Hytera Communications offers $92 million cash to buy Sepura

“Hytera believes that Sepura's dedicated research and development function, which oversees and develops the core patents and technologies relevant to the TETRA protocol, is of very high quality,” according to the release. “However, given the very significant technological changes and challenges that are likely to characterize the PMR market in the years to come, Hytera believes that Sepura will be better positioned with the extensive research and development and financial support of Hytera.

“The Hytera Directors consider that a combination of the two businesses will further develop the combined group's technology, expanding functionality of product base and allowing both companies to broaden their range of customized products and services with more diversified overall solutions.”

For Sepura, the acquisition by Hytera represents the culmination of disappointing year that saw Sepura’s share price drop by 90% just a year after the company paid $139 million to purchase Teltronic, the TETRA manufacturer that does business in the U.S. as PowerTrunk.

Hytera’s offer of 20 pence per share represents a 30% premium to Sepura’s average share price for the month prior to the acquisition discussion being disclosed, according to the joint release. However, Hytera’s offer is 25% less per share than Sepura’s top share price registered on Thursday.

Sepura’s directors consider the terms of the Hytera offer to be “fair and reasonable,” according to the joint release.

“This transaction with Hytera recognizes the underlying strengths of Sepura's technology and customer base despite the difficulties of the last 12 months,” Sepura Chairman Alan Lovell said in a prepared statement. “It will provide certainty for our shareholders, and secure the future of the business. There will be additional opportunities and benefits for the business and its employees as part of a larger group.”

In a separate Sepura press release, Lovell said that the company will continue its LMR radio work as it waits for the Hytera deal to be finalized.

“In the meantime, it is business as usual for Sepura, and we will continue to provide our customers and partners with consistent, high-quality service and support,” Lovell said in a prepared statement.