Global Invacom acquires UK satellite antenna manufacturer for $3.18m

All-cash acquisition by Sat Comms firm.

SGX Mainboard-listed Global Invacom Group Limited (Global Invacom) announced that it has acquired a 100% stake in Raven Manufacturing Limited (RML), a UK manufacturer of satellite antennas, for $3.18m, expanding its manufacturing capabilities within Europe.

Global Invacom, a fully integrated satellite communications (Sat Comms) equipment provider, said that following the all-cash acquisition by its wholly-owned Global Invacom Holdings Limited (GIHL), RML has been renamed Global Invacom Manufacturing (UK) Limited.

The consideration was based on the estimated net asset value (NAV) of RML as at 26 November 2013. 7.5% of the consideration will be held in a joint escrow account and, subject to any price adjustment and warranty and indemnity claims 2.5% of the consideration will be released after three months. The balacne of the consideration will be released on the eighteen month anniversary of completion or otherwide in accordance with the agreement.

RML recorded revenue of approximately $8.89m for the financial year ended 31 December 2012. RML will continue to supply products to the vendor's parent, Raven Antenna Systems Inc., in accordance with a supply agreement entered into between the parties on 26 November 2013.

"This acquisition will increase the Group's capacity and capabilities in the UK as we continue to move up the value chain. This will strengthen our value proposition as an integrated Sat Comms equipment supplier," said Mr Tony Taylor, Executive Chairman of Global Invacom.

"We are confident that this acquisition will contribute synergies to our suite of competencies and help us out to enhance shareholder value," he added.

DMG & Partners Securities Pte Ltd was the financial adviser to Global Invacom Group Limited.