Global radio frequency technology holding group Alaris Holdings’ Alaris Investment Holdings UK subsidiary has signed a membership interest purchase agreement for the acquisition of all of the issued and outstanding membership interests of an undisclosed limited liability company based in the US from a consortium of sellers.
The target company is engaged in the business of designing, developing, manufacturing and distributing various passive radio frequency and microwave antenna solutions and related products around the world.
The motivation for the acquisition is the fact that the US market is the largest defence market in the world, representing about 60% of the global market. The target company will provide increased market access for the sales of Alaris and antenna manufacturer Cojot’s products.
Additionally, the target company will be able to facilitate the production of Alaris and Cojot products, which is, at times, a requirement for the successful supply of products into the US.
Defence and homeland security spending in the US is currently on an upward trend – this should provide Alaris with a growing market opportunity. Research has proven that the US market can best be developed from a platform which is fully integrated into the country’s operations.
Alaris further motivated that the target company’s business model and product range are complementary to the two existing operating entities in the Alaris group. The combined operations and intellectual property will provide a strategic advance to the group to capitalise on new opportunities.
This can be achieved through the design and development, as well as cross-selling of products. Alaris will gain access to the US supply chain, which has additional benefits to the enlarged group in light of current local economic circumstances.
The purchase consideration for the acquisition will be $2.7-million.