4th Jan 2022 15:21
MTI Wireless Edge Ltd - Israel-based technology company - Agrees to acquire 51% stake in Israeli company PSK Wind Technologies Ltd, which develops and manufactures communication and monitoring systems for the government and defence industry, for up to USD4.6 million.
MTI will pay an initial consideration of USD1.2 million, with an earn-out payment subject to performance of up to USD2.6 million. In addition, MTI will make a loan to PSK of USD800,000 and will be party to an option agreement for the acquisition of the remaining 49%.
"We are delighted with this acquisition, which the board expects to be earnings enhancing and will contribute to our future profits. The acquisition will enable MTI Summit to step up the value-chain in the Israeli defence market by offering not only components, but also turn-key solutions. We have been in discussions with PSK for nearly a year and waited to see the recovery in its order book and project quotation activity prior to executing the acquisition," says Chief Executive Officer Moni Borovitz.
Current stock price: 82.00 pence, up 7.2% on Tuesday in London.
By Dayo Laniyan; [email protected]
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