Ultra acquires comms specialist in £48m deal
DEFENCE supplier Ultra Electronics Holdings has acquired Berkshire-based AEP Networks in a deal worth nearly £48m.
Ultra, which has operations in Birmingham and Rugeley, said there would be an initial cash consideration of £36.7m followed by a further sum of £11.1m which would be paid based on financial results for the year ended December 31, 2011.
The vendors were management, who have signed service agreements with Ultra, venture capital companies and private investors, it said today.
AEP, which also has offices in Hertfordshire, New Jersey and California, is a supplier of secure network communication solutions with more than 5,000 blue chip and government customers in over 60 countries.
Ultra said the acquisition of AEP would be financed using its existing facilities and was expected to be earnings enhancing in 2011 before the amortisation of intangibles.
AEP is a bolt-on acquisition within Ultra’s tactical and sonar systems division.
Ultra chief executive Rakesh Sharma said: “AEP provides important complementary technologies and products to advance Ultra’s strategy in the growing cyber security domain.
“AEP is a technology-rich company with strong intellectual property and wide global reach, operating in a fast-growing market place.”
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