Sepura says to acquire Teltronic for 127.5 mln euro

Critical communications systems Sepura has entered into a conditional agreement to acquire Teltronic for EUR 127.5 million. Teltronic provides wireless voice and data communications systems, mainly for customers in the public safety, transportation and utility sectors. Its business covers the entire Professional Mobile Radio (PMR') value chain, including network infrastructure, terminals and command and control centres. The company operates in over 50 countries serving customers based primarily in Latin America, North America and the EMEA region.

Sepura said the deal will reinforce its position as a leading global provider of critical communications systems, strengthening its position in Latin America and the US. The acquisition will be immediately accretive for adjusted diluted earnings per share and significantly enhancing in the first full year.

The increased scale of Sepura will enable the company to deliver larger projects and continue to diversify revenues, also with the addition of significant transportation revenue streams. The deal will enhance Sepura’s product offering and technical breadth as the analogue to digital migration accelerates.

• Entered into a conditional agreement to acquire the entire issued share capital of teltronic for 127.5 million euro
• Deal is immediately enhancing adjusted fully diluted EPS, significantly enhancing it in first fy after completion
• Deal to be part financed by the partial draw down under new debt facilities of 120 million euro
• Deal to be part financed by placing to raise 56.9 million
• Teltronic revenue of 62.9 million eur and adjusted operating profit of 8.4 million eur for FY 2014