17th Mar 2008 07:00
Ultra Electronics Holdings PLC17 March 2008 Embargoed until 0700 17 March 2008 Ultra Electronics Holdings plc ("Ultra" or "the Group") Ultra acquires Canadian signalling and communications business for US$22m Ultra announces the acquisition, subject to regulatory approvals, of MagnetoInductive Systems Ltd ("MISL") of Canada and the USA for an initialconsideration of US$22m. In addition, a minority share of incremental marginwill be paid to the vendors if certain growth targets are met over the next fouryears. MISL is a rapidly growing business employing 50 people between its Canadian andUS operations. MISL's head office and development centre is based in Jeddore,very close to Ultra's existing Maritime Systems business in Halifax, NovaScotia, of which it will become part. MISL also has a production facility in SanBernardino, CA. MISL makes magneto inductive guidance, signalling and communications equipment.These systems can operate not only through air but also through water, sediment,rock and most man-made structures that radio and acoustic systems can notpenetrate. MISL's systems are also highly resistant to conventionalcountermeasures, such as jamming and scanning. This niche technology can be used to initiate controlled detonations, oftenthrough line-of-sight obstructions. One application is in systems used to dealwith Improvised Explosive Devices (IEDs) or roadside bombs. MISL has recentlybeen awarded a contract, with an undisclosed value, by the US Army for suchequipment. This underpins the continuing development of the business. MISL's technology for the remote control of explosive devices is also applicablein commercial markets such as rock blasting for mining and mineral extraction.Other applications of MISL's technology include communication systems foremergency services and first responders who may have to deal with incidentsunderground or in other locations where conventional communication systems areineffective. The acquisition of MISL will be financed using Ultra's existing facilities andis expected to be earnings accretive in 2008. The closing of the transaction isexpected to occur within 60 days. Douglas Caster, Ultra's Chief Executive, commented:"I am pleased to see MISL join the Group. MISL has highly differentiatedtechnology that addresses a real and growing customer need - as such, MISL fitsthe Ultra pattern. I am confident that MISL will continue its rapid growth aspart of the Group's Maritime Systems business." - Ends - Enquiries: Ultra Electronics Holdings plc 020 8813 4321Douglas Caster, Chief Executive www.ultra-electronics.comDavid Jeffcoat, Group Finance Director [email protected] Weber Shandwick Financial 020 7067 0700Susan Ellis / Louise Robson Notes to editors:Ultra Electronics is a group of specialist advanced technology businesses thatdesign, manufacture and support electronic and electromechanical systems,sub-systems and products for defence, security, aerospace and transportapplications worldwide. Ultra, which employs 3,100 people in the UK and North America, focuses on highintegrity sensing, control, communication and display systems with an emphasison integrated information technology solutions. The Group concentrates onobtaining a technological edge in niche markets, with many of its products andtechnologies being market leaders in their field. Ultra's products and services are used on aircraft, ships, submarines, armouredvehicles, surveillance systems, airports and transport systems around the world.Ultra also plays an important role in supporting prime contractors byundertaking specialist system and sub-system integration using the combinedexpertise of the Group businesses. Ultra is organised into three divisions as follows: Aircraft & Vehicle Systems including miniature airborne compressors; highintegrity software and systems; aircraft system electronics; aircraft systemtest equipment; aircraft cockpit indicators; aircraft noise and vibrationcontrol systems; airframe protection systems, armoured vehicle electronicinformation and control systems; human/computer interface equipment and crisisinformation management systems. Information & Power Systems including command and control systems equipment;weapons interfacing electronics; radar tracking; electro optical tracking;surveillance systems; naval data processing and distribution; airport andairline information management systems; ID card systems; naval power conversion;signature management of naval vessels; transit system power conversion andcontrol. Tactical & Sonar Systems including secure tactical line-of-sight radio systems,multiplexers and switches; secure video-conferencing systems; voicecommunication systems; tactical data links; cryptographic equipment; active,passive and multi-static sonobuoys; sonobuoy receivers and processors;distributed surveillance sensor arrays; ship's sonar systems; acousticcountermeasure systems and ship's torpedo defence systems. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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