Vislink Restructuring Operations. Announces M&A Program to Focus Business on IP Video for Broadcast and Public Safety Markets.

Posted by Joe Zaller
Nov 23 2010

Vislink a provider of technology and solutions for microwave radio, satellite transmission, wireless camera and marine CCTV, announced that it plans to restructure its operations.  The company owns several brands in the broadcast industry including Advent, Link, MRC, Pacific Microwave, and Western Technical Services.

After conducting a strategic review of its operations, Vislink said it is re-shaping itself to focus on IP based systems for the news & entertainment and law enforcement & public safety markets where “it believes it is already regarded as a market leader.”

As a result of this decision, the Vislink announced an M&A program though which it will divest certain assets and buy others in order to focus more fully on the broadcast and public safety markets.

Specifically, the company will

  • sell its marine and energy (M&E) business to Hernis Scan Systems for £32.5m
  • sell Western Technical Services (WTS) for between £2.5m – £4.5m
  • acquire Gigawave, one of its competitors in the broadcast market, for an expected £5.75m

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The company said it will use the proceeds from the sales of WTS and its M&E business to pay down debt, invest further in IP development, and make earnings enhancing acquisitions such as Gigawave.

According to a Financial Times article, Vislink CEO Duncan Lewis, said the acquisition of Gigawave will “send a signal to the market of how serious we are about news and entertainment.”

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Vislink Trading Update

The company said that its revenue increased in the third quarter by 15% versus the previous quarter of this year, but that year to date sales are down 24% versus the first nine months of 2009.

News and entertainment market orders for the first nine months of the year were 6% higher than in the same period in 2009.

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Management Changes

The company also said that chairman Tim Trotter will be stepping down as in 2011, and that it intends to appoint John Hawkins as his replacement.  Hawkins has led a number of companies through successful turnarounds and is currently nonexecutive Chairman of Psion plc.

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You can read the full Vislink announcement here.

A Financial Times article about the announcement is here.

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