5/26/2005 - Aeroflex Incorporated (Nasdaq Symbol: ARXX), a leading designer, developer and manufacturer of automated testing solutions and microelectronics for the aerospace, defence and broadband communications markets, has announced that it has reached an agreement to acquire the Test and Measurement Division (“SPG”) of UbiNetics Holdings Limited for cash of approximately $81 million.
SPG, headquartered in Melbourn, England, is a leading developer, manufacturer and integrator of wireless test and measurement solutions specific to commercial wireless product development organizations and service operators. Its products address two primary wireless applications – infrastructure testing and mobile handset testing. SPG’s products focus on global wireless standards (i.e. 2/2.5G, 3/3.5G) and the supply of handset emulation products and load analysis tools that are designed to assist with the research and development of handset and infrastructure products and the effective deployment of wireless networks.
Michael Gorin, Vice Chairman and CFO of Aeroflex said, “For the twelve months ended March 31, 2005, SPG had sales of approximately $34 million and operating income before exceptional items of more than 20%. The acquisition is expected to both produce significant operating synergies and be accretive to fiscal 2006 earnings on both a GAAP and pro forma basis. In addition to the purchase price paid at closing, the seller has the opportunity to earn up to an additional $4 million, depending on the actual level of sales and gross margin in excess of agreed upon levels for the twelve months ending June 30, 2006.”
Len Borow, Vice Chairman and COO of Aeroflex said, “The addition of SPG’s wireless test and measurement products and technologies is expected to enhance Aeroflex’s wireless product portfolio and is designed to enable us to provide more complete testing solutions for the development, manufacturing and service markets and to have greater exposure to the research and development labs of the world’s leading network vendors and operators. The UbiNetics name is recognized worldwide as a leading provider of wireless testing solutions which has garnered them a market leadership position and a top tier customer base. We believe that there is a significant synergy between SPG and Aeroflex’s Test Solutions division, which is expected to lead to important opportunities for future product developments.”
Aeroflex Incorporated is a global provider of high technology solutions to the aerospace, defence, cellular and broadband communications markets. The Company’s diverse technologies allow it to design, develop, manufacture and market a broad range of test, measurement and microelectronic products. The Company’s common stock trades on the Nasdaq National Market System under the symbol ARXX and is included in the S&P SmallCap 600 index. Additional information concerning Aeroflex Incorporated can be found on the Company’s website: www.aeroflex.com.
About Aeroflex Test Solutions
Staffed with experts in RF and microwave signal generation and processing subsystems, Aeroflex Test Solutions Group provides test and measurement systems, instruments, modules, services and integration support for the communications test, military, government and semiconductor industries. Aeroflex' solutions reflect a commitment to industry-accepted standards and the concept of modular product development. They encompass the following product areas:
Aeroflex Test Solutions
Longacres House, Six Hills Way, Stevenage SG1 2AN, United Kingdom
Tel: +44 (0)1438 772087
Fax: +44 (0)1438 727601
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