CSE Global announced that its subsidiary CSE Technologies has entered into a sales and purchase agreement with Logic Technologies Limited to acquire its wholly-owned subsidiaries - Logic Wireless Limited, Logic Wireless Pty Ltd and Logic Wireless Europe Limited– for a consideration of NZD25 million ($20.8 million).
The group sees this acquisition as an opportunity for it to expand and extend its existing radio-communication business and solutions to its customers in New Zealand, Australia and the UK.
Logic Wireless is a leading provider of critical communication such as two-way radio and cellular communication solutions through New Zealand (plus the Pacific Islands), Australia and the United Kingdom founded in 2004.
Two-way radio communication and cellular solutions are distributed by Logic Wireless to governments and core industries including transport, mining, forestry and public safety to meet critical communication and health & safety needs. Logic Wireless has established comprehensive dealer networks in New Zealand and Australia in addition to developing a dealer network in the United Kingdom.
Over the last two years, Logic Wireless has been developing Software as a Service (SaaS) solutions that integrate traditional two-way radio and broadband cellular products. Based on its unaudited consolidated financial statements for the financial year ended June 30, Logic Wireless recorded net profit before tax of approximately NZD4.0 million and EBITDA of NZD4.5 million.
Further, the net book value and net tangible assets attributable to the sale shares as at June 30 were approximately NZD7.2 million. The open market value of the sale shares is not available as the sale shares are not listed or traded on any securities exchange.
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The group intends to fund this acquisition via the proceeds from the its rights issue and banking facilities.
As at 12.35pm, shares in CSE Global are trading at 34 cents.
