BITTIUM ACQUIRES MEGA ELECTRONICS LTD
Oulu, 10 November 2016 – On this date, Bittium Technologies Oyj, a subsidiary of Bittium Oyj, has acquired Mega Electronics Ltd, a company specialised in healthcare technology, by purchasing 100 per cent of the share capital of Remega Oy. Mega Electronics Ltd is a subsidiary fully owned by Remega Oy. Mega Electronics Ltd owns 28.2 per cent of MegaKoto Oy, a company specialised in healthcare service provision, and entered into a binding deal to acquire 100 per cent of the share capital of MegaKoto Oy. The deal concerning the shares of MegaKoto Oy will take place as soon as possible.
Mega Electronics Ltd is a Finnish company established in 1983. The company is a medical device manufacturer certified under ISO13485. The company is specialised in biosignal measuring for cardiology, neurology, rehabilitation, occupational health, and sports medicine. MegaKoto Ltd provides comprehensive arrhythmia monitoring services for its customers, such as primary care centres, private clinics, and hospitals.
In 2015, the total pro forma turnover of Remega Group and MegaKoto Ltd was around EUR 3.1 million and pro forma earnings around EUR 0.2 million. According to preliminary and unaudited calculations, the total pro forma turnover of Remega Group and MegaKoto Ltd from January to October 2016 was around EUR 3.0 million and pro forma earnings around EUR 0.4 million. The turnover between January and October 2016 grew by 58 per cent compared to a corresponding period in the previous year. The companies employ 28 people and their office is located in Kuopio, Finland.
The debt-free cash price of the acquisition, carried out as an acquisition of shares, is EUR 8.0 million and includes the transaction price concerning the shares of MegaKoto Oy which will be adjusted to a sum based on the companies’ cash reserves, liabilities and working capital at the time of acquisition. In addition to the above transaction price, Bittium will pay the sellers an additional trade price amounting to a maximum of EUR 1.0 million on the condition that the acquired business meet certain financial goals in the period between 1 January 2017 and 31 December 2018. The possible additional trade price will be paid in cash after the companies have reached the set objectives. This transaction has no significant impact on Bittium’s balance sheet, profits or financial status, and it will not affect the financial prospects for the year 2016 published by the company in its interim financial report dated 3 November 2016. The Remega Group and MegaKoto Oy will be reported about as part of the Bittium Corporation since the moment of acquisition.
As a result of this deal, Bittium will gain ownership of the Faros cardiac monitoring product family, the NeurOne EEG/ERP measuring system, the BrainStatus disposable electrode headband for quick analysis for identifying and providing first aid to conditions such as epilepsy and stroke, and other healthcare technology products. The Faros products have been granted the CE Class II a certification under the EU’s Medical Device Directive and are FDA-approved in the United States. Megakoto Oy is a private healthcare service provider approved by the National Supervisory Authority for Welfare and Health Valvira. The company’s Kardiolog.fi service is used by over 70 Finnish health centres and private medical stations.
“Bittium has over 30 years of experience in wireless radio technology, and the deal we concluded today will expand our technological competence to health care technology, which is increasingly transitioning to wireless solutions in monitoring patients. The products and services of Mega Electronics and MegaKoto and the strong competence in biosignal measurement technology will strengthen Bittium’s service range in this market. Together, we will be able to provide the healthcare market with globally leading, progressive solutions for patient care in both the hospital environment as well as home care”, says Hannu Huttunen. the CEO of Bittium.
“This deal will give Mega Electronics a wider knowledge base in wireless technology, access to more extensive resources, and improve our chances to rise up to the demands of a constantly growing market. Bittium’s strong product development competence combined with our knowledge of this industry and customer base strengthens the competitiveness of our products”, notes Arto Remes, the CEO and main shareholder of Remega Oy and Mega Electronics.
In Oulu, on 10 November 2016
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Bittium is specialised in developing reliable and secure communications and connectivity solutions using the latest technologies and deep competence in radiotechnology obtained over a 30-year period. For its customers, Bittium offers innovative products, and solutions and product development services based on its product platforms. In addition, Bittium offers high-quality data security solutions for mobile devices and laptops. In 2015, the turnover of Bittium’s continuous operations was EUR 56.8 million and profits EUR 2.3 million. Bittium Corporation is listed in NASDAQ in Helsinki. www.bittium.com