LONDON Aeroflex Inc has acquired the Racal Wireless Solutions Group for $38million in cash and a deferred payment of up to $16.5million in either cash or Aeroflex common stock depending on performance.
Racal Wireless, is a developer, manufacturer and integrator of digital wireless testing and measurement equipment for infrastructure testing and mobile handset testing.
Michael Gorin, president of Aeroflex, said, “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.”
“For calendar 2002, Racal Wireless had sales of approximately $50million 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 $40million in sales and be accretive to our earnings in the second half of our fiscal year,” said Gorin.
Racal wireless group's UK operations are based in Slough while the Aeroflex UK operation in Stevenage came as part of its April 2002 purchase of IFR which had previously bought Marconi Instruments.