Sepura shares rise after Teltronic acquisition
Shares in Sepura have risen by almost 10pc on the back of a deal to buy its Spanish rival Teltronic for €127.5m (£94.2m).
Accoding to an article in The Telegraph, Sepura's acquisition of Teltronic will help accelerate plans to move into international markets, including Latin America, as well as making it an alternative to market leader Motorola in the US.
Sepura said that it would suspend its existing buyback programme and fund the deal with £60.5m of new equity and loan facilities from Barclays, HSBC and Santander.
Teltronic is understood to have been put up for sale by its private equity firm N+1 around a year ago and had caught the attention of Sepura’s chief executive Gordon Watling. He said: “This is a highly complementary and transformational acquisition which will be immediately earnings enhancing. It brings together two of the market's growing players, to create a market leading digital Professional Mobile Radio company, with a broader offering and significantly enhanced capabilities."
Analysts at Panmure Gordon said the deal would be earnings enhancing in the first year.
Sepura shares were trading up 13.52p, or 10.32pc to 144.52p in Friday afternoon trading.
