logo
Share SHARE
FONT-SIZE Plus   Neg

ARC Wireless To Buy Advanced Forming Tech And Quadrant Metals Tech - Quick Facts

ARC Wireless Solutions Inc. (ARCW) announced the signing of definitive agreements to purchase Advanced Forming Technology Inc., or "AFT" and Quadrant Metals Technologies, LLC or "QMT".

ARC said that it will be renamed as ARC Group Worldwide, Inc. and will be a diversified manufacturing holding company with operations in Colorado, Florida, Pennsylvania, Texas, Minnesota, China and Hungary. ARC noted that it intends to continue to trade on the NASDAQ Capital Market with the ticker symbol "ARCW".

ARC Wireless Solutions stated that will acquire AFT, including its assets and operations in Hungary, for $43 million.

ARC said that will issue 7.86 million shares valued at $4.00 per share, a 36% premium to ARC's closing price as of April 12, 2012, to acquire QMT in a non-cash transaction.

Transaction values equity of QMT at $31.4 million, a significant discount to the low end of a range determined by an independent valuation and advisory services provider.

Pro-forma projected Net Sales for twelve months ending June 30, 2012: $66 million.

Historical EBITDA margins at QMT have been approximately 15-19%, which ARC would expect to achieve or improve on company-wide over time, upon integration and growth of its business.

The transaction, which is expected to be completed in the second quarter of 2012 subject to regulatory and shareholder approval, is also anticipated to involve a 1-for-1.95 reverse stock split.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Social media app Snapchat has introduced a new location service, Snap Map, that will allow users of the app to see the location of all their friends on a map. The new feature will essentially allow a user to see where his friends are hanging out and what they are up to and also share his own location with friends in real time. The U.S. has suspended all imports of fresh beef from Brazil due to recurring concerns about the safety of the products. The suspension of shipments from Brazil, the fifth largest exporter of beef to the U.S., will remain in place until the Brazilian Ministry of Agriculture takes corrective action, the U.S. Department of Agriculture or USDA said in a statement. The annual Federal stress test was cleared by 34 top banks. The result shows strong capital levels and the ability of large banks to remain capitalized even in stressed situations. The Federal Reserve noted that these banks will be able to lend to households and businesses even at severe recession and throughout the economic cycle.
comments powered by Disqus
Follow RTT