The binding heads of agreement will see total purchase consideration which is comprised of five million US dollars in cash, payable upon closing of the Acquisition and 75 577 634 Poynting shares to be issued at the closing price on the date of closing of the Acquisition.
(READ MORE: Poynting sees losses in commercial and CCS divisions)
Given that Poynting DS and ARA will be working closely together and there are significant synergistic benefits anticipated, no profit warranties were deemed appropriate.
[DATA POY:Poynting Holdings Limited] designs and manufactures specialised broadband antennas and other related radio frequency (RF) products.
ARA, based in the United States of America, is a world class supplier of RF and antenna systems to predominantly the military system integrator and homeland security markets.
“ARA has built up significant knowhow and an extensive product range over its more than 50 years history,” said Poynting through a SENS announcement.
“ARA is considered to be almost a replication of Poynting DS, but with more than 90 per cent of sales being in the USA.”
The acquisition will see Poynting establishing a larger market presence in the USA.
“Poynting and ARA wish to combine their businesses in order to benefit from synergies between the companies and to grow their businesses into a significant business in the defence market,” read the statement.