Acquisitive Ultra in second deal of the New Year
DEFENCE supplier Ultra Electronics has made its second acquisition of the New Year with a $31m (£20m) deal to buy US firm 3e Technologies International Inc from EF Johnson Technologies.
The transaction is subject to regulatory approvals and is expected to occur within 45 days.
The move comes just one week after Ultra signed an £18m ($28m) deal to acquire Michigan-based Adaptive Materials Inc. Ultra has operations in Birmingham and Staffordshire,
Maryland-based 3eTI designs and supports military grade wireless local area network access points, mesh networks, security software, and encryption technologies for military and commercial markets. Ultra said 3eTI’s specialist capabilities were critical to a growing market for secure wireless networking and communications ‘on the move’. Mesh networking is an adaptive type of networking that ‘self configures and self heals’. 3eTI also has innovative technology that uses encryption to prevent access to a protected network, addressing the need for enhanced cyber security.
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For the year ended 31 December 2009, 3eTI generated revenue of $29.1m. The acquisition of 3eTI will be financed using Ultra’s existing facilities and the group said it is expected to be earnings enhancing in 2011.
Rakesh Sharma, Chief Operating Officer of Ultra, said: “The acquisition of 3eTI adds its highly differentiated range of solutions to Ultra’s portfolio of specialist capabilities related to secure networking, communication and cyber security. 3eTI complements Ultra’s existing strengths in software defined radios, communication systems and electronic warfare systems. There are also synergies with Ultra’s market positions for border security and base protection.”
