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© verticalarray dreamstime.com Embedded | January 28, 2013

EB sells its Test tools product business to Anite

Elektrobit Corporation (EB) and Anite plc have signed an agreement on 28 of January 2013, under the terms of which EB agrees to sell its Test Tools product business to Anite.
The Transaction comprises the sale of the shares of EB's subsidiary Elektrobit System Test Ltd., a company based in Oulu, Finland, and certain related other assets in the USA and China. EB's Test Tools product business provides radio channel emulation tools and testing solutions for the development of the wireless technologies and is a part of the EB's Wireless Business Segment employing a total of 54 persons in Finland, USA and China.

The cash consideration payable to EB by Anite as a result of the Transaction is EUR 31.0 million on a cash and debt free basis, subject to a post completion adjustment based upon the level of net working capital and cash and debt in the Test Tools product business on January 31, 2013.

The closing of the Transaction results in a non-recurring net profit of about EUR 23 million in the first quarter of 2013, and non-recurring net cash flow of about EUR 28 million, in the first half of 2013. The net assets of the Test Tools product business in January 31, 2013 are expected to be approximately EUR 5 million.

In 2012 and 2011 the net sales and operating profit of the Test Tools product business were as follows:

Part of the common cost base of the Wireless Business Segment previously allocated for the Test Tools product business are not be included in the Transaction and will remain in the Wireless Business Segment for the time being.

Closing of the Transaction has been agreed to take place on January 31, 2013, subject to completion of customary closing events, such as payment of the cash consideration.

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