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Technology Stocks : WTT-Wireless Telecom. -- Ignore unavailable to you. Want to Upgrade?

To: Dan Hoppy who wrote (2287)	1/8/1999 12:11:00 PM
From: wombat	Read Replies (1) \| Respond to of 2426

BOWTHORPE EXPANDS TELECOMS BUSINESS THROUGH WIRELESS AND SATELLITE TESTING ACQUISITION 743 - 8 January 1999 Bowthorpe plc, the international electronics group, has signed an agreement to acquire the wireless and satellite communications testing product lines and certain assets of Wireless Telecom Group, Inc. ('Wireless Telecom Group') of Paramus, New Jersey. The acquisition, which is subject to certain conditions including regulatory approval, is to be made for a cash consideration of $19.0 million (£11.4 million). The acquired technologies will be integrated into Bowthorpe's existing wireless and satellite communications testing businesses, enhancing the group's portfolio of advanced test solutions for established and emerging communications technologies. Wireless Telecom Group's wireless communications testing products (1997 sales: $18.7 million) (£11.2 million) are used by developers of cellular handsets and modems, radio transceivers, wireless networks and related equipment. Its wireless products complement those of Bowthorpe's subsidiary Telecom Analysis Systems ('TAS'), assisting Bowthorpe to broaden its market coverage for established wireless communications protocols and to develop new products for the latest wide band protocols and other market sectors. Wireless Telecom Group's satellite communications testing products emulate the channel between a satellite and a ground-based transceiver and are used in the development of base stations, handsets and other equipment for satellite communications networks. The business has made successful progress in the emerging commercial market and achieved 1997 sales of $1.25 million (£751,000). Wireless Telecom Group's satellite technology complements both TAS and Global Simulation Systems ('GSS'), another Bowthorpe subsidiary, which is a leader in test systems for Global Positioning System satellite navigation equipment. TAS and GSS are members of Bowthorpe's Network Management group. Wireless Telecom Group's Chairman, Dale Sydnor, and a team of sales and development engineers involved with the acquired wireless and satellite testing businesses are to join the Network Management group. They are to relocate to a dedicated development centre in Mahwah, New Jersey, and manufacturing is to be integrated with TAS and GSS. There will be a dollar for dollar adjustment to the purchase consideration for any shortfall from a net asset value at completion of $8.0 million (£4.8 million). Completion is expected during February. In a separate but related transaction, TAS is to sell to Wireless Telecom Group for $2.5 million cash (£1.5 million) the business and certain assets relating to two non-core noise generation products, which will complement Wireless Telecom Group's future on-going activities. Commenting on the acquisition, Nicholas Brookes, Chief Executive, said: "This acquisition is an excellent step forward in Bowthorpe's strategy of offering a range of state-of-the-art testing products for the telecommunications industry. Wireless Telecom Group's products will accelerate our penetration of the developing satellite market and consolidate our position in terrestrial wireless testing. We are also delighted to secure a talented pool of engineers who can assist with our growth plans and help maintain our position at the leading edge of technological developments in these fast-moving markets." - ends -