Hytera Agrees to Acquire Norsat for US$62M
Monday, March 27, 2017 | Comments

Norsat International, which owns Sinclair Technologies, announced that it entered into an arrangement agreement with Hytera Project, a subsidiary of Hytera Communications, under which Hytera will acquire all the issued and outstanding shares of Norsat for US$10.25 in cash per share, pursuant to a court-approved plan of arrangement.

All unexercised options and restricted share units will also be acquired under the arrangement. The proposed transaction values Norsat at an equity value of approximately US$62 million.

Privet Fund Management submitted a non-binding letter of interest to acquire Norsat for cash consideration of $10.25 USD per share subject to due diligence, financing, the completion of a definitive agreement and other conditions.

At that time, Norsat and Hytera were in exclusivity with respect to a possible transaction. Based on Hytera’s offer of the same cash consideration as indicated in Privet’s non-binding letter of interest, with no further due diligence, no financing conditions and the synergies between Norsat and Hytera, including a greater global sales presence, access to additional markets and research and development (R&D) collaboration, the directors of Norsat’s board of directors decided to proceed with the arrangement agreement with Hytera.

“After discussions with multiple parties and a comprehensive review of several indications of interest with respect to a strategic transaction, we are very pleased to have reached an agreement with Hytera,” said Fabio Doninelli, director and chairman of the Norsat board. “We believe this all-cash transaction offers Norsat shareholders immediate liquidity and certainty of value. We thank our shareholders for their patience and support during the strategic review, a process that has ultimately surfaced significant value for all Norsat shareholders.”

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