Sale of Clear-Com Business
6 April 2010
The Vitec Group plc
Sale of Clear-Com Business
Vitec Group, the international provider of products and services for the broadcast, photographic, and MAG (military, aerospace and government) markets, announces that it has entered into an unconditional agreement to sell its Clear-Com business, comprising the shares of Vitec Group Communications Ltd and of Clear-Com Research Inc and its membership interest in Vitec Group Communications LLC (together "Clear-Com") to HM Electronics, Inc for a total cash consideration of up to £8.7 million.
Clear-Com manufactures a range of wired and wireless intercommunications products, including both party-line and digital matrix systems, for use predominantly in the broadcast and entertainment markets. It has operations in San Francisco, USA; Cambridge, UK; and Montreal, Canada.
Vitec Group's purpose is to provide vital products and services that support the capture of exceptional images. As Clear-Com's business is involved in the transmission of voice signals, it is not considered central to Vitec Group's ongoing strategy. HM Electronics, Inc will provide a good strategic home for Clear-Com's ongoing development.
For the year ended 31 December 2009, Clear-Com incurred an operating loss before tax of £3.5 million on turnover of £22.3 million. Gross assets at 31 December 2009 were £8.9 million.
Consideration of £8.0 million will be paid in cash at completion. It is subject to post-closing adjustments for changes in working capital. There is a further potential consideration of up to £0.7 million in 2011 based on the actual turnover achieved during 2010.
Receipts from the sale will be used to pay down borrowings and to facilitate Vitec Group's future business initiatives.
The Clear-Com management team will transfer with the business.
Commenting on the disposal, Stephen Bird, Group Chief Executive of Vitec, said:
"We are pleased to have secured the sale of this business to a leading manufacturer of wireless audio equipment. This represents a further step in our strategic direction announced last year, focusing on opportunities in our chosen core markets".
ENDS
Enquiries:
The Vitec Group plc
Stephen Bird, Group Chief Executive Telephone: 020 8939 4650
Richard Cotton, Group Finance Director
Financial Dynamics
Susanne Yule / Sophie Kernon Telephone: 020 7269 7121
Notes
1. This statement should not be taken to mean that earnings per share (pre-amortisation of intangibles, stock adjustments or any one-off costs) of The Vitec Group plc will necessarily exceed or be lower than historic earnings per share (pre-amortisation of intangibles) of The Vitec Group plc and no forecast is intended or implied.
2. $ to £ sterling conversions have been shown at the rate of $1.5617 / £1 for 2009 Income Statement figures, of $1.6149 / £1 for 2009 Balance Sheet figures and $1.5110 / £1 for 2010.
3. Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect The Vitec Group plc's current expectations concerning future events and actual results may differ materially from current expectations or historical results.
Vitec is an international Group principally serving customers in the broadcast, photographic and military, aerospace and government (MAG) markets. Listed on the London Stock Exchange with 2009 revenue of £315 million, Vitec is based on strong, well known, premium brands on which its customers worldwide rely. Vitec is organised in three divisions: Imaging & Staging, Videocom and Services.
Imaging & Staging designs, manufactures and distributes equipment and accessories for photography, video and events.
Videocom designs and distributes systems and products used in broadcasting and live entertainment, film and video production and MAG.
Services provides equipment rental, workflow design and technical support for camera, video, audio, fibre optic and wireless technology used by TV production teams and film crews.
More information can be found at: www.vitecgroup.com.
This information is provided by RNS
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