VANCOUVER, British Columbia, Jan. 19 (UPI) -- Canada's Norsat International Inc. is acquiring Sinclair Technologies Holdings Inc., a leading provider of antenna and RF conditioning products.
Norsat, a provider of broadband communications products, will pay $19.25 million for the company. It said $4.75 million of purchase capital will come from cash, $12 million in debt financing from its principal banker and 4,028,932 common shares issued from the treasury.
Of the purchase price, the majority will be paid up front with the remaining portion, including the common shares, being held in escrow and earned out over a period of two years.
The acquisition is expected to close this month.
"This is an exciting day for Norsat shareholders as this acquisition will bolster our revenue base and is expected to be immediately accretive to earnings," said Amiee Chan, president and chief executive officer of Norsat. "Sinclair has experienced rapid growth in the past several years and is expected to continue to grow, which will act as a catalyst for upside potential to this transaction.
"The acquisition of Sinclair is a perfect complement to our core businesses and keeps to the focal point of our mission of becoming a premier provider of broadband communications solutions for remote and austere regions. In addition, Sinclair will help diversify our markets into the commercial space and into the municipal government level."