Vislink acquires Gigawave9 June 2011
Vislink today announced that it has acquired the entire issued share capital of Gigawave for £3.75 million. Gigawave had suffered in the economic downturn, reporting losses over the two years to the end of April. The move consolidates two of the most important camera links manufacturers, as Vislink already owns Link, writes David Fox.
Gigawave was privately owned by several individual shareholders and employs 87 people. It is a leading designer, manufacturer and supplier of wireless camera, microwave and antenna products for the broadcast market, with particular strengths in on-board applications for motor sport events.
Vislink believes that "Gigawave will complement and broaden the Group’s capabilities in terms of engineering, product portfolio and geographic reach and will therefore strengthen the Group’s position in its broadcast market."
It will integrate Gigawave into the its UK operations, and hopes to realise the benefits from improved global distribution of all the Vislink brands as well as operational efficiencies.
Gigawave’s founder and current Managing Director, Henry Barczynski, will serve as Chief Marketing Officer reporting to Vislink’s Chairman and Chief Executive, John Hawkins (pictured).
For the financial year ended 30 April 2010, Gigawave generated audited sales of £12.53 million and a loss before tax of £0.97 million. As at 30 April 2010, it had audited gross assets of £5.32 million. For the year to 30 April 2011 Gigawave generated unaudited sales of £10.1 million, an unaudited loss before tax of £0.43 million and had unaudited gross assets of £4.87 million. Vislink currently employs more than 200 people worldwide and has net assets in excess of £50 million.
Under the terms of the Acquisition agreement, an initial consideration of £1.75 million was paid on completion on 2 June 2011. The Group also repaid shareholder loans of £0.4 million on completion. Deferred consideration of £1million is payable on both the first and second anniversaries of completion. The initial consideration was paid in cash, financed out of the Group’s existing cash balances. Deferred consideration will also be paid in cash. The Board expects the acquisition to be earnings enhancing in its first full year.
"The Gigawave business and its management are well known to us and we look forward to the Gigawave and Vislink teams working together, sharing product developments, distribution and sales opportunities," said Hawkins.
Vislink brands include: Advent, MRC, PMR and WTS, and it makes IP Gateways, microwave radio, satellite transmission, and wireless camera systems, with manufacturing operations in the UK, USA and Singapore.