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Stadium Buys United Wireless For Up To GBP8 Million Cash And Shares(Alliance News Via Acquire Media NewsEdge) LONDON (Alliance News) - Stadium Group PLC said Monday it has acquired specialist electronics designer and manufacturer United Wireless Ltd for up to GBP8 million in cash and shares. Stadium said the acquisition is expected to "significantly" add to earnings in its first full year of ownership and will compliment its existing technologies, presenting growth opportunities and synergies. It expects that in the current year the acquisition will make a small contribution to profits. It will pay an initial consideration of GBP6.0 million, of which GBP5.0 million will be in cash and GBP1.0 million from the issue of 1.5 million new shares. It will pay for the cash portion using a new five-year facility of up to GBP5 million provided by its existing banking partner HSBC Holdings PLC. Stadium will make an additional earn-out payment of up to GBP1.3 million in shares and GBP660,000 in loan notes if United Wireless exceeds certain defined earn-out targets. The current owners and joint managing directors of United will stay with the company. In the first nine months of its current financial year pre-acquisition, United posted earnings before interest and tax of GBP900,000 on sales of GBP6.0 million. "The successful integration of United will deliver the next step of our strategy to become a design-led electronics business by adding wireless connectivity to our integrated technology offering. I am confident that this acquisition will generate significant value for Stadium shareholders," said Chief Executive Charlie Peppiatt in a statement. The company reiterated that its trading in the first half of the year was in line with expectations and significantly ahead of the previous year. It will announce its half-year results on September 9. Shares in Stadium were trading up 13% at 74.50 pence Monday morning. Copyright 2014 Alliance News Limited. All Rights Reserved. |