Aeroflex Incorporated Signs Letter of Intent to Acquire UTMC Microelectronic Systems, Inc.
BusinessWire, Tuesday, November 17, 1998 at 10:53
PLAINVIEW, N.Y.--(BUSINESS WIRE)--November 17, 1998--Aeroflex
Incorporated (NYSE Symbol: ARX), announced today that it has signed a
Letter of Intent to acquire the integrated circuit operations of UTMC
Microelectronic Systems, Inc. (UTMC) from United Technologies Corp.
(NYSE Symbol: UTX) acting through its Hamilton Standard division. The
$46 million all cash transaction is planned to close by early January,
1999 and is subject to standard conditions, including that Aeroflex
satisfactorily complete its due diligence investigation, obtain
financing for a portion of the purchase price and obtain certain
required approvals, including regulatory approval.
UTMC is a leader in supplying radiation-hardened integrated
circuits for satellite communications. UTMC's Commercial RadHard(tm)
products, services and foundry partners are expected to compliment
Aeroflex' line of microelectronic module and interconnect products for
the communications marketplace. UTMC is headquartered in Colorado
Springs, CO and owns over 100,000 square feet of space dedicated to
design, engineering, test and assembly and administration. For its
most recent twelve months ended October 31, 1998, UTMC reported sales
of approximately $34 million for its integrated circuit operations.
"The addition of UTMC to our microelectronics business segment
will be an important building block in our strategy to provide more
content in communications platforms, primarily in the satellite
communication area," said Leonard Borow, Executive Vice President and
Chief Operating Officer of Aeroflex Incorporated. "Utilizing UTMC's
intellectual property, we will be able to offer our customers silicon
based integrated circuits in addition to the microelectronic modules
and interconnects we are presently supplying. In addition, UTMC's
technical expertise, as well as their facilities in Colorado Springs,
will offer Aeroflex flexibility and synergy in our future design,
manufacturing and assembly requirements."
Aeroflex Incorporated through its subsidiaries, utilizes advanced
technologies to provide state-of-the-art microelectronic module,
interconnect and testing solutions used in communication applications
for commercial and defense markets. It also designs and manufactures
motion control systems and shock and vibration isolation systems used
for commercial, industrial and defense applications.
This news release does not constitute an offer to sell or the
solicitation of offers to buy any security and shall not constitute an
offer, solicitation or sale of any security in any jurisdiction in
which such offer, solicitation or sale would be unlawful. Except for
historical information contained in this news release, the matters
discussed are forward looking statements that involve risks and
uncertainties. Among the factors that could cause actual results to
differ materially are the following: the effect of business and
economic conditions; the impact of competitive products and pricing;
capacity and supply constraints or difficulties; product development,
commercialization or technological difficulties; the regulatory and
trade environment; the ability of the Company to integrate the
production facilities of the company to be acquired; whether the
acquisition will be consummated as anticipated; and the risk factors
reported from time to time in the Company's SEC reports.
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