Hytera Communications deal for Sepura expected to close next week
Hytera Communications plans to complete its $92 million deal to buy Sepura next Wednesday after receiving favorable indications recently from regulators in Germany and the United Kingdom (UK), according to a joint statement from the companies released this week.
Hytera initially announced its consideration to purchase Sepura—the UK-based TETRA manufacturer—last November and formally announced its all-cash offer for the LMR company a month later. Since then, the companies have awaited the necessary regulatory approvals to proceed with the deal.
Spanish authorities dropped its investigation into the matter last month. On May 12, the UK government announced that it would not extend its review of the proposed acquisition. The German government announced its intention on May 5 to investigate the matter further, but officials for Hytera and Sepura do not believe that proceeding will be a significant problem, according to a joint statement from the companies issued this week.
“Following further discussions with the German authorities, [Hytera and Sepura] have concluded that the notification from the Federal Ministry of Economic Affairs and Energy announced 5 May 2017 will not have implications for the timing of completion of the acquisition,” according to the joint statement.
Hytera expects to complete the acquisition of Sepura on May 24, and trading of Sepura shares will be cancelled on the morning of May 25, according to the joint statement from the companies.
If this schedule is followed, Hytera’s $92 million purchase of Sepura would be completed less than two years after Sepura acquired Teltronic—a company that does business in the United States under the PowerTrunk brand—for $139.6 million in a deal completed in May 2015.
However, Sepura struggled throughout 2016, with the company’s stock price dropping by 90% amid multiple profit warnings, much of which company officials attributed to key contracts being delayed by customers for budgetary reasons.