NEWTON, South Australia,
Aug. 8, 2012 /PRNewswire/ -- Codan Limited (ASX:
"CDA") has announced the acquisition of Daniels Electronics Limited
(Daniels), a leading designer, manufacturer and supplier of land
mobile radio communications (LMR) solutions in North America.
The acquisition, which is scheduled for completion on
17 August 2012, comprises an upfront
cash payment of CAD$25 million
(approx. AUD$24 million) with the possibility of approximately
CAD$2.0 million (A$1.9 million) in additional payments if certain
earn-out targets are achieved over the next 18 months. The funding
for the transaction, also announced today, will be through a mix of
debt and equity. The acquisition of Daniels delivers on Codan's
stated strategy of growing market share and diversifying its radio
communications product offering.
Codan Limited designs, manufactures and markets a diversified
range of high value added electronic products, with three key
business divisions; radio communications, metal detection and
mining technology.
"The acquisition of Daniels begins a transition for Codan beyond
solely HF systems to a communications solutions provider. Daniels
provided the opportunity to enter the LMR market with a competitive
and established product line," said Kevin
Kane, president and general manager, Codan Radio
Communications Division.
Daniels offers a broad range of land mobile radio communications
used by specialised market segments, such as public safety, which
require high performance and high reliability private
communications networks. Key clients include fire services
organisations, police, ambulance and other emergency service
providers, military, forestry organisations, highways and road
contractors and mining and exploration companies.
Daniels has an extensive distribution network and a strong
public and private client base, predominantly located in
Canada and the United States.
The business offers a catalogue of differentiated products which
focus on power efficient infrastructure solutions, which are well
suited to the needs of customers in the emerging world.
"Originally a family owned business, Daniels is very happy to be
acquired by an Australian company that shares a similar history and
culture and that will continue to grow the opportunities for our
LMR products," said Daniels Electronics President and Chief
Operating Officer, Robert Small.
With over 100 years of combined history and innovation in the
radio communications market, the integration of Daniels into the
Codan Radio Communications Division provides Codan with an
established North American market and the opportunity to bring
Daniels' product offerings to Codan's global distribution networks,
especially in the emerging world.
"Land Mobile Radio is an outstanding complement to Codan's
existing product line, distribution network and customer base. Many
of Codan's customers already require solutions in addition to HF
products, and most of our existing distributors are already active
in the LMR market. Daniels' value proposition of interoperability
and low power consumption technology is ideal for emerging
international markets," said Kane.
About Codan
Codan Radio Communications designs and builds premium
communications equipment for High Frequency (HF) radio
humanitarian, security and protection applications. For over 50
years the company has earned a reputation for unsurpassed quality
and customer service in the most demanding environments on earth.
Founded in 1959 in South
Australia, Codan is a globally active company that employs
500 employees worldwide. Codan's products are sold into more than
150 countries with exports representing approximately 90% of
revenues. Codan excels in customer service and support throughout
the world via a network of dealers, distributors and agents. For
more information about the Codan Radio Communications Division,
visit: www.codanradio.com.
About Daniels
For the past 60 years, Daniels has provided customers in
North America and internationally
with highly reliable Base Stations and Repeaters that are
environmentally robust to operate in rugged and extreme temperature
conditions where low current consumption (solar / battery powered)
is a key requirement. Daniels has been a pioneering member of the
P25 Digital standard, for radio system interoperability between
emergency response governmental organizations, providing enhanced
functionality and encryption. Daniels' self-servicing customers
range from Forestry and National Park services through Police and
Fire departments and on to Utility and Transportation groups.
www.danelec.com
Media Contacts:
North American Media Contact:
Susan Sheppard,
susan.sheppard@codanradio.com, +1-585-764-2377
Australian Media Contact:
Holly Caruso,
hollycaruso@codanradio.com, +61-407-095-986
Daniels Electronics Limited Media Contact:
Gerry Wight,
Gerry_Wight@danelec.com, +1-250-382-8268
