Norsat’s products and services include product design and development, production, distribution and infield support and service of fly-away satellite terminals, microwave components, Radio Frequency (RF) conditioning products, maritime based satellite terminals and remote network connectivity solutions.
“After discussions with multiple parties and a comprehensive review of several indications of interest with respect to a strategic transaction, we are very pleased to have reached an agreement with Hytera. We believe this all-cash transaction offers Norsat shareholders immediate liquidity and certainty of value. We thank our shareholders for their patience and support during the strategic review, a process that has ultimately surfaced significant value for all Norsat shareholders,” said Fabio Doninelli, Norsat’s director and chairman of the board.
Norsat’s independent directors have unanimously determined that the arrangement is in the best interests of Norsat and its shareholders and the board’s advisors have said that the shareholders should consider it financially fair (subject to some assumptions, limitations and qualifications).
For the deal to proceed, it must obtain the approval of two-thirds of the votes cast by Norsat’s shareholders, together with certain regulatory approvals. Should these be obtained, it is expected to close in the second quarter of 2017.
Hytera’s total assets amounted to £532.2 million in 2015, of which £61.58 million was in cash. The company is currently in the process of acquiring Sepura for £74 million and is in an intellectual property dispute with Motorola Solutions, which has alleged that that Hytera’s DMR two-way radios, base stations, repeaters and dispatch systems, as well as its related commercialisation and sales activities, are infringing its patents and using “stolen Motorola Solutions trade secrets”. Hytera has said that it “…firmly believes that its business practices and operations will be fully vindicated” and has recently issued a statement further asserting this belief.
