JSE AltX-listed Alaris Holdings has signed an agreement to acquire US-based mWave Industries after applying for and receiving unconditional Committee on Foreign Investment in the US approval from the US government.

The technology holding company concluded the final closing requirements on September 30, with the acquisition taking effect from October 1.

“One of the main objectives for Alaris is to expand its footprint globally. The US market is the largest defence market in the world, representing approximately 60% of the global market,” says Alaris Holdings Group CEO Juergen Dresel.

“The US administration has, for the first time in a few years, voted for and approved an increased Defence Budget to the amount of about $716-billion for 2019.”

The acquisition negotiations were focused on creating an environment that will have strategic benefit to both organisations, with mWave major shareholder Peter Anania to be nominated to serve on Alaris Holdings’ board.

“The product lines complement one another and, by joining forces, the companies will be able to provide an expanded product portfolio and improved service to customers,” says Dresel.

Based in Maine, mWave Industries designs and manufactures standard and custom microwave antenna products for commercial and government applications spanning the scientific, defence and academic communities.

It produces innovative custom and commercial microwave antenna solutions, with special focus on 60 GHz, 70 GHz, 80 GHz, 94 GHz and 110 GHz millimetre-wave reflector antenna, with their microwave antenna, brands including the Mark Grid, Gabriel, mWave and Quickfire lines of terrestrial microwave antenna.

mWave also specialises in parabolic grids, solid parabolic and directional panel antenna, as well as feeds including conscan and monopulse designs, with additional product offerings comprising microstrip arrays, panels, horns, helices, sectors, omnidirectional antennas and waveguide arrays.

This is in line with Alaris’s strategy, which is built on three pillars, namely radio frequency technology, owning intellectual property and global presence.

“Companies within the group are strongly focused on research and development and hold exploitable patented technologies that can be monetised into the future,” he says.

mWave’s extensive experience in design and strong specialisation focus will add value to the group’s competitive features and will enable an increased performance and product offering for the customers.

With three companies now within the group, including Alaris Antennas, in South Africa, and COJOT, in Finland, Dresel expects fostering of design innovation and continued pursuit of novel technologies to be enhanced through the sharing of ideas and talent in these organisations.

“Being a clientcentric organisation with clients based worldwide, the group’s strategy was to expand its global footprint in order to be closer to its clients. With the acquisition of mWave, this objective becomes a reality,“ he says.

“Since the market in the US holds significant opportunities and international expansion is an important part of the group’s global strategy, we are confident that this acquisition will not only provide increased benefits for our customers, but will improve shareholder value as well,” he concludes.