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News Release from: Eurotech S.p.A
Edited by the Manufacturingtalk Editorial
Team on 08 December 2006
Eurotech acquires Applied Data Systems
Eurotech has acquired Applied Data Systems for an initial consideration of $41.5 million on a cash free debt free basis
Eurotech, a leading designer and developer of high performance and low power embedded computing systems, announces the acquisition of Applied Data Systems for an initial consideration of $41.5 million, on a cash free debt free basis, equal to a multiple of 8.6x earnings before interest, tax, depreciation and amortisation ("EBITDA") for 2006 An additional earnout payment of up to $12.5 million may be payable, based on 7xEBITDA for the calendar year 2007 less the initial consideration
This article was originally published on Manufacturingtalk on 6 Jan 2004 at 8.00am (UK)
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The initial consideration and the additional earnout will be paid in cash.
ADS is a global leader in the design, development and production of "application-ready" embedded computer systems, typically running Windows CE or Linux.
Its products are known for their sophisticated graphics, low power consumption and robust functionality.
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ADS specialises in helping customers connect their applications to the latest available wireless, mobile and enabling technologies.
Their model of providing a complete embedded computer "beneath" the application, and configurable to its customer's specifications, is innovative in the industry and a significant factor in the company's robust growth over the last 5 years.
ADS' partners include ARM, Intel, Marvell, Freescale, Cirrus, Microsoft (Embedded Windows CE), Arrow, Avnet, Sharp, Kyocera, Skelmir, and IBM/Dynapro.
Significant clients include Ricoh, Medtronic, Tyco, Philips, Voxware, Agilent Technology, and General Dynamics, into industries such as medical monitoring, fleet management, Point Of Sale, process control, digital signage and gaming.
In the year to 30 September 2006, ADS's unaudited turnover was $28 million and EBITDA was $4.8 million.
Eurotech's Directors believe the acquisition will be earnings enhancing in the first full year of the acquisition.
Moreover, ADS recently entered into an agreement for the acquisition of 65% of the share capital of Chengdu Vantron Technology , a RandD company based in China, with approx 30 engineers employed, that develops and manufactures embedded computer devices.
Commenting on the transaction, Eurotech Chief Executive, Roberto Siagri, said: "The enhanced product portfolio and wider international presence made possible by this acquisition will improve Eurotech's global offering - particularly in the field of low power embedded technologies - and strengthen our competitive position".
"ADS has an excellent reputation, an extensive technology base and a strong management team committed to building on the success it has already achieved".
"The business is an excellent fit for Eurotech: the two companies share a number of technologies in common, as well as a geographic footprint".
"We expect this deal to bring immediate benefits to both businesses".
"Eurotech has made no secret of its intention to acquire other businesses which offer a good strategic fit, in addition to growing organically".
"We continue to look for acquisition opportunities in the US, UK and continental Europe that support our strategic aim to build strength, size and scale in our chosen markets and to enhance shareholder value".
Robert Olsen, President of ADS, added: "We're proud to be a part of the Eurotech team".
"The synergies, in capital, technology, and manufacturing, will greatly enhance value to our customers and exploit our ability to continue to provide quality embedded computer systems in an exciting and rapidly growing market".
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