CAMBRIDGE, ON, April 15 /CNW/ - COM DEV International Ltd. (TSX:CDV), a leading manufacturer of space hardware subsystems, today announced that it has purchased substantially all of the assets of Routes AstroEngineering ("Routes"), a privately owned, Ottawa-based company specializing in the design and manufacture of advanced instruments for space science research applications. The acquisition provides COM DEV with technologies that support its microsatellite initiative, including solar array power systems, satellite mass memory units, and detector read-out electronics.
"In absorbing the assets of a key subcontractor, we are mitigating risk by securing the completion of deliverables on a couple of our existing government programs, while at the same time adding new capabilities and complementary technology," said John Keating, CEO of COM DEV. "This purchase is very well aligned with our strategic thrust on instruments and microsatellites. We have worked with the Routes team on a number of programs, and I expect their highly talented and experienced staff to strengthen our COM DEV Canada division."
Under terms of the transaction, which was prompted by unusual liquidity concerns at Routes, COM DEV is providing total consideration of $1.5 million in the form of assumption and discharge of certain specified liabilities of Routes. COM DEV has purchased Routes assets with a total fair market value estimated at $1.7 million, including land and building located in close proximity to its existing Ottawa facility, as well as intellectual property, equipment, receivables, inventory and work in process. The majority of former Routes employees have accepted employment with COM DEV Canada. The transaction closed earlier today.
Routes has been a significant player in the Canadian space industry for 22 years and has made solid contributions to Canada's success in space. Routes' heritage includes: the OSIRIS ozone monitoring instrument; a power subsystem for SCISAT; a readout electronics subsystem for UVIT; solar panels for QUICKSAT, CANX4 and 5, and AISSAT; and a data storage unit for Cassiope.
About COM DEV
COM DEV International Ltd. (www.comdevintl.com) is a leading global designer and manufacturer of space hardware subsystems. With facilities in Canada, the United Kingdom and the United States, COM DEV manufactures advanced products and subsystems that are sold to major satellite prime contractors for use in communications, space science, remote sensing and military satellites.
This news release may contain certain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from results indicated in any forward-looking statements. The Company cautions that, among other things, in view of the rapid changes in communications markets and technologies, and other risks including the cost and market acceptance of the Company's new products, the level of individual customer procurements and competitive product offerings and pricing, and general economic circumstances, the Company's business prospects may be materially different from forward-looking statements made by the Company.
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