More Broadcast Vendor M&A: Vislink Completes Acquisition of Gigawave for £3.75 Million

Posted by Joe Zaller
Jun 03 2011

UK-based Vislink plc, which owns the Advent, Link, and MRC brands, announced that it has closed the acquisition of Gigawave. The purchase price was £3.75m, and Vislink says the deal will be accretive to earnings.

Gigawave designs and manufacturers wireless camera, microwave and antenna products for the broadcast market. For the year ended April 30, 2011 Gigawave posted a pre-tax loss of £430,000 on revenue of £10m.  In the previous year, the company lost £1m on revenue of £12.5m.

Under the terms of the deal Vislink is paying £1.75m cash up front and repaying £400,000 of shareholder loans. Vislink will then pay an additional £1m cash on each of the first and second anniversary of the transaction.

Vislink says that Gigawave, which currently employs 87 people, will be integrated into its UK operations, and will strengthen its position in its broadcast market by broadening the its capabilities in terms of engineering, product portfolio and geographic reach.

Henry Barczynski, Gigawave’s founder and current managing director will remain with Vislink after the transaction. He will become Vislink’s chief marketing officer and report to CEO John Hawkins.

Vislink first telegraphed its intention to buy Gigawave in November of 2010 when it said it was restructuring its operations to focus more fully on the broadcast and public safety markets. At that time Vislink said it expected to pay £5.75m for Gigawave, and Vislink’s then CEO Duncan Lewis was quoted in a Financial Times article as saying the acquisition of Gigawave would “send a signal to the market of how serious we are about news and entertainment.”

Then in a March 2011 trading update, Vislink indicated that the deal might not happen, saying “Whilst we continue to believe in the industrial logic of bringing Gigawave and Vislink and their associated brands together we have, to date, been unable to reach an agreement with the vendors.”

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Related Content:

Press Release: Vislink Acquires Gigawave

Vislink Interim Management Statement for 1H 2011

Vislink News & Entertainment Revenue Declined 28 Percent in 2010

Vislink CEO to Step Down, Will be Replaced by New Chairman on Interim Basis

Vislink Lays off 25% of Workforce

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

Vislink Trading Update for 1H 2010

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