Rood Technology acquires Microtec

The combination of Rood Technology and Microtec, with consolidated sales in 2007 of approx. €17.5 million and close to 165 employees, will have a strong European market position, based on its present service provision: testing, test engineering, failure analysis and qualification. Microtec is one of the independent testhouses in Europe, with a major position in both Opto Electronics (chips for optical applications) and with fabless semiconductor companies. Sales for 2007 totalled €8.0 million, with an operating result (EBIT) of approx. €648,000 (under German GAAP). 40% of sales is realized in Germany, 16% in Britain, 12% in Scandinavia, 20% in Switzerland and the remainder in the rest of Europe. The company has approximately 65 employees. The acquisition price of Microtec GmbH’s shares is € 3,050,000, of which € 2,800,000 will be paid immediately and € 250,000 at the end of 2008. The acquisition will be paid in cash, which has been raised partly by means of a share issue and partly by means of a bank loan in combination with a bridging loan. The acquisition has been made possible to a great extent by independent private investors as well as by TIIN (The Informal Investment Network). Microtec will be effectively taken over as of 1 January 2008. Under IFRS, Microtec will be consolidated as from 3 July 2008.