Aeroflex acquires Racal Wireless Solutions Group

Aeroflex has acquired the Racal Wireless Solutions Group for $38 million in cash and a deferred payment of up to $16.5 million in either cash or Aeroflex common stock.

Aeroflex has acquired the Racal Wireless Solutions Group for $38 million in cash and a deferred payment of up to $16.5 million in either cash or Aeroflex common stock, at Aeroflex's option, depending on the Wireless Solutions Group achieving certain performance goals for the year ending 31st July 2004.

Racal Wireless is a leading developer, manufacturer and integrator of digital wireless testing and measurement solutions.

Its products address two primary wireless applications - infrastructure testing and mobile handset testing.

The Wireless Solutions Group's broad suite of test systems support all product life-cycle stages, including research and development, conformance, production, installation and commissioning, field service and network optimisation, as well as nearly all 2G, 2.5G and 3G wireless standards.

"The addition of Racal Wireless testing solutions products and technologies to our current product offerings will enable Aeroflex to provide a full spectrum of wireless testing solutions, from development to production and service", said Michael Gorin, President.

"The Racal Instruments name is recognised worldwide as a leading edge provider of wireless testing solutions which has garnered them a top tier customer base.

We expect that the proximity of the Racal Wireless UK facility to our existing UK operations will provide the two operations with the opportunity to share their respective expertise and achieve certain synergies.

"For calendar 2002, Racal Wireless had sales of approximately $50 million with profitable operations.

For the period of our ownership in our fiscal year ended 30th June 2004, we anticipate that Racal Wireless will contribute over $40 million in sales and be accretive to our earnings in the second half of our fiscal year".

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