Teledyne Technologies Inc. [TDY] yesterday said it has agreed to acquire Britain’s Intelek plc for $52 million, including stock options, net and pension debt, to expand its capabilities in microwave electronic systems and components.
The cash value of the deal is $41.4 million.
“The operations of Intelek are highly complementary with Teledyne’s existing microwave business,” Robert Mehrabian, Teledyne’s chairman, president and CEO, said in a statement. “In particular, Paradise Datacom’s high power solid state amplifiers and modems for commercial customers complement Teledyne’s strong position in broadband high power traveling wave tube (TWT) and lower power solid state subsystems, primarily for military customers. By combining our capabilities, we believe that Teledyne will be able to offer, over time, an enhanced range of complete high power TWT and gallium arsenide and gallium nitride-based solid state amplifier systems for communications, radar and electronic warfare applications.”
Intelek, which had $56.2 million in sales for its fiscal year ended March 31, is comprised of three divisions. Paradise Datacom, Labtech, which makes microwave circuits and components for defense electronics, global telecommunications, space and satellite communications, and CML, which produces precision machined and composite aerostructures for military and commercial aircraft.
Teledyne said that it will consider strategic alternatives for CML, which may include a sale of the business.
Teledyne’s financial adviser on the deal is N.M. Rothschild & Sons and Intelek’s is Altium Capital Ltd.