Ultra acquires specialist US electronic component company
Ultra has announced that it has agreed to acquire the power conversion business operated by RFI Corporation ("RFI"), a wholly-owned subsidiary of DGT Holdings Corp. (OTCBB:DGTC) ("DGT"), for a cash consideration of $12.5m (subject to a potential working capital adjustment).
RFI is an established manufacturer of proprietary, high-voltage, power conversion subsystems including electronic filters, high voltage capacitors, pulse modulators, transformers and reactors, and a variety of other products designed for industrial, medical, military and other commercial applications. It is located on Long Island, New York, USA, close to Ultra's EMS Development Corp., part of the Group's Airport & Power Systems division, and will be integrated into the EMS business in 2012.
The transaction is subject to the approval of at least two-thirds of the outstanding shares of common stock of DGT. Assuming satisfaction of all closing conditions and approval by DGT's shareholders, the transaction is expected to close in the third quarter of 2012.
Rakesh Sharma, Chief Executive of Ultra, commented:
"I am pleased that we have reached agreement to acquire RFI. It has strong market and technical synergies with EMS with which it will be combined to the benefit of both businesses."