| Fri 9 Sep 2011, 7:30 | | ALT - Allied Technologies Limited - Strategic investment in Altech |
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ALT - Allied Technologies Limited - Strategic investment in Altech
Allied Technologies Limited
Member of the Altron Group
Incorporated in the Republic of South Africa
Registration number: 1946/020415/06)
Share code: ALT
ISIN number: ZAE000015251
Altech acquires SetOne GmbH
JSE listed Allied Technologies Limited (Altech) today announced the acquisition
of SetOne GmbH ("SetOne"), a German-based pioneer of innovative DVB-based
products and solutions in the German-speaking Europe or DACH region.
The acquisition follows the completion of a satisfactory due diligence of SetOne
by Altech and approval by the board of Altech.
SetOne was incorporated in 2005 and has since been positioned as one of the
leading Original Equipment Manufacturer (OEM) companies in central Europe. Its
strength as a preferred supplier is evidenced by its recent breakthrough into
Spain, Italy and other neighbouring countries in Europe.
The company specialises in the domain of digital video broadcasting ("DVB") STB
receivers. It has expertise and key skills in the supply chain design phase and
product management of these products. SetOne has built strategic alliances with
major key players in the value chain of its products and services offering
throughout Asia and Europe, which include license agreements with leading
companies such as Sisvel, MPEG LA and Rovi.
SetOne is especially strong in the management of a range of outsource
manufacturing partners for the DVB-T/T2 products intended for the European
retail free-to-air (FTA) markets, both satellite and terrestrial broadcast. With
these partnerships, the ability to innovate has become an integral part of the
company`s strategy and this is particularly evidenced by the very strong
aesthetic design philosophy in the SetOne products.
The purchase of SetOne unlocks significant synergies with other Altech
operations, in particular Altech Multimedia, one of the world`s leading
providers of products, professional services and competitive software solutions
to the digital Broadcast, Broadband and Telecommunications Industries.
The acquisition will enhance Altech Multimedia`s reach into international
markets and further entrench its relationships with international partners
regarding product development and management in these markets as well as
leveraging established distribution channels and exploiting and cross-selling
other business opportunities associated with its Global Decoder Logistics
("GDL") services.
"This acquisition enhances our ability to diversify Altech Multimedia`s income
streams by growing its international business footprint and reducing its
reliance on locally generated business and is in line with the Altech Group`s
strategy to increase non-SA revenue and profits," said Craig Venter, Altech CEO.
"SetOne has established a significant track record in the STB repair and
servicing business and is a preferred supplier in the central European region in
terms of its OEM capabilities. The company has produced profitable results since
its inception and with this acquisition we are well positioned to further
entrench our leadership in the Telecommunications, Multi-media and Information
Technology sector," said Venter.
"This acquisition complements Altech Multimedia`s broadband and broadcast
product offerings to address convergence within the multimedia market and
strengthens our service offerings," said Peter Balchin, CEO of Altech
Multimedia.
According to Bartolomeo Caputo, CEO of SetOne, the transaction brings together a
range of synergies between the two companies that will be of enormous benefit to
the European market.
"Since the founding of our company in 2005, we have strived to provide creative
and innovative products and reliable service to all our customers and business
partners. Now with Altech Multimedia we look forward to taking our business to
the next level," he said.
To preserve current efficiencies and standards, Altech will retain existing
SetOne management and staff whilst it provides supporting administration
services and strategic input to the company.
More about the Transaction:
The Transaction is inclusive of all the IP owned and already developed by
SetOne.
The agreements governing the transaction include limited warranties and terms
and conditions that are customary for transactions of this nature. The effective
date of the Transaction will be the first day of the month following the month
in which the last conditions precedent in terms of the agreements are fulfilled.
- ENDS -
Date: 09/09/2011 07:30:01 Produced by the JSE SENS Department.
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