28th Apr 2015 07:32
LONDON (Alliance News) - Antenna manufacturer MTI Wireless Edge Ltd Tuesday said it will buy Israel-based wireless control products and services provider Mottech for up to ILS18.6 million, or around USD4.8 million, a deal that will give it a new wireless services recurring revenue stream and that it expects to boost earnings immediately.
MTI said USD4 million of the consideration will be paid upon completion of the deal, with the remainder to be paid dependent on Mottech meeting financial performance targets in 2016 and 2017.
"We are delighted with this earnings enhancing acquisition that enables MTI to step up the value-chain and provide wireless control solution and services" said MTI Chief Executive Dov Feiner. "We expect the market for Mottech's core water management services to expand and we look forward to applying Mottech's remote control and monitoring systems in other markets."
MTI shares were up 9.5% to 10.4 pence on Tuesday morning, one of the best performers in the AIM All-Share index.
By Sam Unsted; [email protected]; @SamUAtAlliance
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