Simmonds Communications Ltd. Acquires Intelatech Inc.

Strategic Insights -

Simmonds Communications Ltd. (SCL), a prominent player in the global wireless communications market, has announced the acquisition of Intelatech Inc., a leading technical stocking representative for semiconductors and passive electronic components. The purchase price is $2 million, with an earn-out based on Intelatech's future profit performance. The acquisition aims to enhance SCL's emerging electronics business and expand its national electronics component distribution. The transaction is subject to due diligence, regulatory approval, and the approval of both companies' boards of directors.

Key Takeaways:

  • Simmonds Communications Ltd. (SCL) has entered into a Letter of Intent to acquire Intelatech Inc. for $2 million plus an earn-out based on Intelatech's future profit performance.
  • The acquisition aims to add an additional dimension to SCL's emerging electronics business and enhance its national electronics component distribution.
  • Intelatech Inc. is a manufacturer's technical stocking representative for semiconductors and passive electronic components, with sales offices in Toronto, Montreal, Ottawa, and Vancouver.
  • The acquisition will be completed through the issue of SCL's common shares.
  • The deal is subject to due diligence investigation, regulatory approval, final negotiation, legal documentation, and the approval of the boards of directors.
  • Michael Ruscigno will continue as President of Intelatech, while Gerry Gentile will remain Vice President Sales and Marketing.
  • Simmonds Communications Ltd. already owns a majority interest in A.C. Simmonds & Sons Limited and has other business interests in the wireless communications market.

Statistics:

  • $2 million: the purchase price of Intelatech Inc.
  • 4: the number of sales offices Intelatech has in Canada (Toronto, Montreal, Ottawa, and Vancouver).
  • 2: the number of SCL executives who will continue in their roles at SCL following the acquisition.
  • $2 million+ (future performance of Intelatech): the maximum earn-out for the acquisition.

Sources:

  • Simmonds Communications Ltd. (SCL) press release dated November 21, 1994, as cited in BUSINESS WIRE.