Stadium Group buys United Wireless
ELECTRONICS manufacturer United Wireless, a Warrington company with 40 staff, has been acquired for up to £8m by North East-based listed firm Stadium Group.
United Wireless specialises in the design and manufacture of M2M (machine to machine) wireless solutions that support wireless connectivity between devices. It has a strong customer presence in the automotive and telematics sectors, and also works with OEMs in the areas of ‘infotainment’ and vending, industrial equipment and asset tracking
Hartlepool-based Stadium Group will pay an initial consideration of £6m to acquire United, to be satisfied by £5m in cash and the balance of £1m by the issue of 1,515,152 shares on completion.
The cash consideration will be paid using a new five year revolving credit facility of up to £5m.
Stadium said United’s current owners and joint managing directors, are remaining with the business and have agreed to retain their shares for a minimum period of two years following completion.
Stadium will pay an additional £1.33m in shares and £0.66m by way of loan notes if United exceeds certain defined earn-out targets.
During the first nine months of its current financial year pre-acquisition, United delivered unaudited sales of £6.0m and EBIT of £0.9m.
