Ultra Electronics Acquires Privately-held Varisys - Quick Facts

Ultra Electronics Holdings Plc. (ULE.L) Thursday said it has acquired privately-held Varisys Limited for an initial cash consideration of 16 million pounds. Additional payments of up to 2 million pounds will be payable, based on performance over the next two years.

Varisys is a designer and manufacturer of products for high performance embedded computing applications. Its products and services portfolio include bespoke solutions for customers operating in the aerospace, defence, telecommunications, and industrial sectors.

The acquisition will give Ultra an organic capability in this niche area, allowing group businesses to meet customer requirements more quickly and cost-effectively.

Varisys is a British company based in High Wycombe, UK. It was acquired from its founders Paul Gentle and Adam Barnes, both of whom would remain with the business under Ultra ownership.

The acquisition will be financed using Ultra's existing facilities and is expected to be earnings enhancing in 2013.

Varisys will continue to operate from its current location as part of Ultra's existing Controls business within the Aircraft & Vehicles Systems Division.

Rakesh Sharma, CEO, said, "Varisys has an excellent position in providing bespoke high performance processing solutions to meet the challenging needs of the aerospace, defence, telecommunications and industrial markets. This acquisition fits Ultra's strategy of growth in specialist, niche electronic markets."

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