Ascom acquires the Australian company Integrated Wireless
Ascom acquires the Australian company Integrated Wireless (www.integratedwireless.com.au), which is a specialist provider of wireless communication systems for Australia and New Zealand.
This acquisition gives Ascom Wireless Solutions direct access to the Australian and New Zealand markets and creates opportunities to combine the business activities of Integrated Wireless with its existing portfolio. Moreover, Ascom gains a foothold to further build up its position in the Asia Pacific market.
Integrated Wireless is a privately held specialist provider of wireless communication systems and workflow solutions. The company designs, installs, commissions and maintains wireless solutions mainly for the health care and elderly care markets (representing around 70% of the revenues), but also for the corrective, industrial, education, government, and retail market segments in Australia and New Zealand. Integrated Wireless has its domicile in Sydney with additional offices in Melbourne, Brisbane, Perth and Auckland. Integrated Wireless was until now also the exclusive distributor of Ascom Wireless products for Australia and New Zealand. Integrated Wireless has broad customer base and achieved revenues in the range of AUD 13-14 million in fiscal year 2012/13 with EBITDA margins comparable to the Ascom Wireless Solutions Division.
Ascom signed an agreement to acquire all shares of GTM Resources Pty. Ltd., which holds all shares of Integrated Wireless Pty. Ltd. and Integrated Wireless Software Pty. Ltd. The expected closing date is 2 January 2014. All 62 employees will be taken over at their existing locations. The closing purchase price of AUD 14 million reflects a cash- and debt-free value of AUD 9 million and a cash balance of AUD 5 million. In addition, Ascom has agreed to an earn-out payment of up to AUD 1 million, payable one year after closing, dependent on the achievement of agreed revenue and profitability targets.
Leo Silver, who has successfully led the Integrated Wireless business for the past ten years, will run the company to be renamed "Ascom Integrated Wireless Pty. Ltd." as its Managing Director.
This acquisition gives Ascom direct access to the Australian and New Zealand markets and forms a good basis to further build up Ascom's position in the Asia Pacific region. Integrated Wireless will continue to develop its business in Australia and New Zealand with a focus on improving communication, security, and workflows in the health care segment.
Fritz Mumenthaler, CEO of Ascom, says: "Ascom is very pleased to have acquired a business with such a good strategic fit. With this acquisition we do not only gain direct access to the Australian and New Zealand market, but also have the opportunity to combine Integrated Wireless' software and integration competence with our existing portfolio. This transaction represents the next step in building and strengthening the leading position of our Wireless Solutions Division in the global healthcare communications market."
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