- Through the acquisition Mitec anticipates increasing its wireless
- Significant synergies between the companies are expected to help
Mitec achieve long-term profitability
- Conditional offer with closing date scheduled in 2009
MONTREAL, Sept. 17 /CNW Telbec/ - Mitec Telecom Inc. ("Mitec") (TSX: MTM), a leading designer and manufacturer of mobile wireless, fixed wireless, broadcast and satellite components, announced today that it has entered into a letter of intent to purchase all of the issued and outstanding shares of a privately-held North American company ("Company") which provides wireless hardware components to major telecom equipment providers worldwide. The proposed transaction is subject to a number of conditions set forth below.
The acquisition is expected to increase Mitec's wireless revenues substantially and provide synergies to help Mitec achieve long-term profitability, a key aspect of Mitec's merger and acquisition strategy, as mandated by its Board of Directors. The acquisition is expected to close in Fall 2009.
Please note: Due to the nature of the proposed transaction, the Company's name and details on the acquisition price will only be disclosed upon completion of several conditions, including confirmation of financing the acquisition, a successful financial, legal and accounting due diligence process as well as various other steps customary to merger and acquisition activities. It is anticipated that the key employees of the Company will enter into employment agreements with Mitec upon closing.
About Mitec Telecom Inc.
Mitec is a leading designer and provider of radio frequency (RF) products for the telecommunications and satellite communications industries, as well as a variety of other sectors. Mitec sells its products worldwide to network providers for incorporation into high-performing wireless networks used in voice and data/internet communications. Headquartered in Montreal, Canada, Mitec also operates facilities in California and China. Mitec is listed on the Toronto Stock Exchange under the symbol MTM. On-line information about Mitec is available at www.mitectelecom.com.
Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for Mitec's products, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in Mitec's public filings with the appropriate securities regulatory authorities.
SOURCE Mitec Telecom Inc.
For further information: For further information: Mr. Jeffrey Mandel, Director, Investor and Corporate Relations, (514) 694-9000, firstname.lastname@example.org; Source: Mitec Telecom Inc.