Aeroflex acquires Racal Wireless Solutions Group
Plainview, NY— Aeroflex Inc. recently acquired the Racal Wireless Solutions Group for $38 million and a deferred payment of up to $16.5 million in either cash or Aeroflex common stock, depending on whether the group achieves certain performance goals for the year ending July 31, 2004. Aeroflex is a designer, developer and manufacturer of automated testing solutions and microelectronics for the aerospace, defense and broadband communications mark.
Racal Wireless is a developer, manufacturer and integrator of digital wireless testing and measurement solutions. Its products address two primary wireless applications: infrastructure testing and mobile handset testing. The group’s broad suite of test systems support all product lifecycle stages, including research and development, conformance, production, installation and commissioning, field service and network optimization, as well as nearly all 2G, 2.5G and 3G wireless standards.
‘The addition of Racal Wireless testing solutions products and technologies to our current product offerings will enable Aeroflex to provide a full spectrum of wireless testing solutions from development to production and service,’ says Michael Gorin, Aeroflex’s president. ‘The Racal Instruments name is recognized worldwide as a leading edge provider of wireless testing solutions which has garnered them a top tier customer base. We expect that the proximity of the Racal Wireless U.K. facility to our existing U.K. operations will provide the two operations with the opportunity to share their respective expertise and achieve certain synergies.
‘For calendar 2002, Racal Wireless had sales of approximately $50 million with profitable operations. For the period of our ownership in our fiscal year ended June 30, 2004, we anticipate that Racal Wireless will contribute over $40 million in sales and be accretive to our earnings in the second half of our fiscal year.’
Control Engineering Daily News Desk
Jim Montague, news editor