Hytera to acquire Norsat for US $62M

Norsat International Inc. (TSX: NII; NYSE MKT: NSAT), a provider of unique and customized communication solutions for remote and challenging applications, has agreed to be acquired by Hytera Project Corp., a subsidiary of Hytera Communications Co., Ltd. (SHE: 002583) for US $10.25 per share in cash.

The proposed transaction values Norsat at an equity value of approximately US $62 million

As previously disclosed by Norsat on March 17, 2017, Privet Fund Management LLP submitted a non-binding letter of interest to acquire Norsat for cash consideration of US $10.25 per share subject to due diligence, financing, the completion of a definitive agreement and other conditions.

Based on Hytera’s offer of the same cash consideration as indicated in Privet’s non-binding letter of interest, with no further due diligence, no financing conditions and the synergies between Norsat and Hytera including but not limited to a greater global sales presence, access to additional markets and research and development collaboration, the Independent Directors of Norsat’s Board of Directors decided to proceed with Hytera arrangement agreement.

Raymond James Ltd. is acting as financial advisor to Norsat. Raymond James Ltd. and KPMG LLP, an independent advisor, provided Fairness Opinions in connection with the transaction. McMillan LLP is acting as Norsat’s legal advisor. Bayfield Strategy, Inc. has been retained as Norsat’s strategic communications advisor.

Founded in 1993, Shenzhen, China based Hytera Communications is a leading solution provider of Professional Mobile Radio communications. The company offers complete and customized communication solutions to government, public security, utility, transportation, enterprise & business for higher organizational efficiency.

UPDATED:
Privet re-launches US $11.00 non-binding LOI to acquire Norsat

photo credit: Hytera

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.