06.13.2011 02:45 PM
Vislink Acquires Gigawave for US$6 Million
Hungerford, U.K.: Vislink recently
announced that on it acquired the entire issued share capital of Gigawave Ltd.
for a cash consideration of £3.75 million (US$6 million).
Based in Colchester, Essex, U.K., Gigawave is privately owned individual
shareholders and employs 87 people. The company designes wireless camera,
microwave and antenna products for the broadcast market, and is said to have a
“particular strength” in on-board applications for motorsport events. Vislink
said Gigawave will complement and broaden its capabilities in terms of
engineering, product portfolio and geographic reach.
Gigawave will be integrated into Vislink’s U.K. operations. Gigawave’s founder
and existing managing director, Henry Barczynski, MM will serve as chief
marketing officer reporting to the chairman and chief executive, John Hawkins.
For the financial year ended April 30, 2010, Gigawave generated audited sales
of £12.53 million (US$20.3 million) and a loss before tax of £0.97 million
(US$1.6 million). As of April 30, Gigawave had audited gross assets of £5.32
million (US$8.3 million). For the year ending April 30, Gigawave generated
unaudited sales of £10.1 million (US$16.4 million), an unaudited loss before
tax of £0.43 million (US$698,000) and had unaudited gross assets of £4.87
million (US$7.9 million).
Under the terms of the acquisition agreement, an initial consideration of £1.75
million (US$2.84 million) was paid on completion June 2, 2011. Vislink also repaid
shareholder loans of £0.4 million (US$649,000) on completion. Deferred consideration
of £1.0 million (US$1.62 million) is payable on each of the first and second anniversary
The initial consideration was paid in cash, financed out of existing cash balances.
Deferred consideration will also be paid in cash. The board expects the acquisition
to be earnings enhancing in its first full year.