Andrew Corporation, a global leader in communications systems and
products, has signed a definitive agreement to acquire Skyware Radio
Systems GmbH of Krefeld, Germany, a producer of state-of-the-art
electronic products for broadband satellite communications networks.
Under terms of the agreement, which is subject to review by German
antitrust authorities, Andrew will pay approximately USD 9 million in
cash, with additional cash consideration possible if certain financial
performance goals are reached over a two-year period. Privately-held
Skyware generated approximately USD 12 million in sales during its
fiscal 2004. Its products are in use primarily within the Europe, Middle
East, and Africa market.
The addition of Skyware's microwave interactive low noise block (iLNB)
and transceiver modules to Andrew's current direct broadcast satellite
(DBS) and very small aperture terminal (VSAT) antenna product lines will
make Andrew the first manufacturer to produce a comprehensive range of
integrated outdoor unit (ODU) antennas for satellite broadband access.
iLNBs convert and amplify radio signals, such as television remote
control commands from a subscriber back to a satellite service provider.
"Skyware's capabilities are a perfect match with Andrew's existing
antenna products, global customer reach, and manufacturing and sourcing
capabilities," said Jude Panetta, group president, Satellite
Communications, Andrew Corporation. "Our new ability to add transceiver
electronics to our VSAT antenna products will meet satellite broadband
providers' needs for integrated systems that are easy and fast to order,
install, and support. This value-added capability will be unique to
Andrew and benefit our customers worldwide."
The acquisition is expected to be slightly accretive to earnings during
the first 12 months. As part of the transaction, Skyware and its
approximately 40 employees--located in Krefeld, Germany, and Stockport,
England--will join Andrew's Satellite Communications Group, which had
sales of USD 140 million in fiscal 2005.
Satellite Communications provides a complete line of antennas from 43
centimeters to 9.4 meters for all enterprise, government, and consumer
satellite communication applications. Andrew-designed and -built
products--which cover C, Ku, K, X, and the emerging Ka band--include
type approved earth station antenna hubs and gateways for broadband and
broadcast, VSAT broadband antennas for consumer and enterprise
customers, DBS antennas for home satellite broadcast systems, and
complete installation and testing services.
"Skyware's state-of-the-art low noise signal converters and transceivers
for Ku band and Ka band satellite communications applications are
well-positioned in the market," said Jochem Borren, commercial manager,
Skyware Radio Systems. "As part of Andrew, we will be able to address
new global opportunities and help develop the next generation of
integrated satellite communications solutions."
About Andrew Corporation
Andrew Corporation (NASDAQ:ANDW) designs, manufactures, and delivers
innovative and essential equipment and solutions for the global
communications infrastructure market. The company serves operators and
original equipment manufacturers from facilities in 35 countries. Andrew
headquartered in Orland Park, IL, is an S&P 500 company founded in 1937.
Forward Looking Statements
Some of the statements in this news release are forward looking
statements and we caution our stockholders and others that these
statements involve certain risks and uncertainties. Factors that may
cause actual results to differ from expected results include
fluctuations in commodity costs, the company's ability to integrate
acquisitions and to realize the anticipated synergies and cost savings,
the effects of competitive products and pricing, economic and political
conditions that may impact customers' ability to fund purchases of our
products and services, the company's ability to achieve the cost savings
anticipated from cost reduction programs, fluctuations in foreign
currency exchange rates, the timing of cash payments and receipts, end
use demands for wireless communication services, the loss of one or more
significant customers, and other business factors. Investors should also
review other risks and uncertainties discussed in company documents
filed with the Securities and Exchange Commission.