Aeroflex has acquired the UK-based Racal Wireless Solutions Group for $38 million cash and a deferred payment of up to $16.5 million in either cash or Aeroflex common stock, at Aeroflex’s option, depending on the Wireless Solutions Group achieving certain performance goals for the year ending July 31, 2004.
Racal Wireless is a manufacturer and integrator of digital wireless testing and measurement equipment. Its products address two primary wireless markets – infrastructure testing and mobile handset testing.
‘We expect that the proximity of the Racal Wireless UK facility to our existing UK operations will provide the two operations with the opportunity to share their respective expertise and achieve certain synergies,’ said Aeroflex president Michael Gorin.
‘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,’ he added.