19th Feb 2014 07:39
LONDON (Alliance News) - Ultra Electronics Holdings PLC said Wednesday that it had acquired US-based specialist sonar provider 3 Phoenix Inc for USD70 million in cash, a deal that it expects to boost its earnings and enhance its relationship with the US Navy.
3 Phoenix is based in Virginia, and provides sonar, radar, intelligence, surveillance and reconnaissance products. Its main customer is the US Navy.
Ultra Electronics said that it will integrate the company during 2014, and expects it to be fully earnings accretive during 2015. The acquisition was financed from Ultra's existing facilities. It said there are a significant number of internal and external synergies it can exploit.
"3Pi is a technology-rich company with an established position in the US market place," said Ultra Electronics' Chief Executive Rakesh Sharma in a statement. "It's sonar, anti-submarine warfare, mine detection and electronic warfare capabilities have strong market-facing synergies with Ultra's Avalon, Command & Control, Maritime Systems, Ocean Systems, Sonar Systems and USSI businesses."
3 Phoenix, which employs 182, will be bolted on to Ultra's existing Tactical & Sonar Systems division. The company's five founders, who have sold the business to Ultra, will all stay on, the British company said.
Shares in Ultra Electronics last traded at 1,936.00 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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