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Singapore, 30 August 2005 — Singapore Technologies Engineering Ltd (ST Engineering) today announced that Vision Technologies Electronics, Inc (VTEE), has entered into a definitive merger agreement to acquire iDirect Inc. (iDirect) at an enterprise value of US$165m (approximately S$276m). VTEE is a subsidiary of Vision Technologies Systems (VTS), the US headquarters of ST Engineering.
The acquisition is not expected to have any material impact on the consolidated earnings per share of ST Engineering for the current financial year. The consolidated net tangible assets per share of ST Engineering is expected to be reduced from S$0.45 to S$0.36 after the acquisition.
The purchase consideration was arrived at between VTEE and iDirect on a willing buyer, willing seller basis, after negotiations between the parties, taking into account iDirect’s past performance, current profitability and future prospects. This transaction will be financed by internal cash resources and debt.
The transaction is subject to regulatory approvals and other closing conditions, including the approval of a majority of iDirect’s stockholders at a special meeting. A majority of iDirect’s stockholders have agreed to vote in favour of the merger agreement. Upon completion of the merger, iDirect will become a wholly-owned subsidiary of VTEE.
iDirect is a leading manufacturer of two-way internet protocol-based broadband satellite networking solutions. Its customer base includes over 100 companies in the telecommunications services, oil and gas, construction and marine industries, as well as government agencies. Founded in Virginia in 1994, it has 148 employees and offices in the United Kingdom, Italy and Hong Kong SAR. Winner of the 2004 Product Innovation of the Year award by Frost & Sullivan*, iDirect has filed 13 patents and has invested approximately US$13m in R&D over the last five years. Its unaudited turnover for first half of 2005 was US$37.1m.
“Joining the ST Engineering Group gives us the opportunity to penetrate new markets. Our products are highly complementary to ST Engineering’s satellite communications technologies, and together we will deliver a more complete package of solutions to our customers.”
~ John KEALEY
CEO, iDirect
“The acquisition of iDirect extends ST Electronics’ presence in the US and propels us to be a leading global satcom solutions provider. We now have a comprehensive satcom product offering with the integration of iDirect’s satcom network equipment and our existing satcom front-end transceiver, marketed under our established Agilis brand.”
~ SEAH Moon Ming
President, ST Electronics
Dy CEO (Electronics and Land Systems) & President (International Business),
ST Engineering
“ST Engineering Group is gaining momentum in its acquisition drive to grow beyond Singapore. iDirect is a great addition for us in the key market of US and to our expanding global footprint. With this acquisition, all our four core businesses now have significant presence in the US and we’re set to grow in this market.”
~ TAN Pheng Hock
President & CEO, ST Engineering
*A US-based global consulting firm covering emerging high-technology and industrial markets. The annual Frost & Sullivan awards recognises outstanding industry achievements by top companies worldwide.
ST Engineering is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenues of S$2.95 billion in FY2004. Its market capitalisation of more than S$7 billion ranks it among the largest companies listed on the Singapore Exchange. ST Engineering has 12,000 employees worldwide, and over 100 subsidiaries and associated companies in 15 countries and 22 cities. Please visit www.stengg.com
iDirect Inc. designs, develops, and markets satellite-based broadband access solutions targeted at the enterprise, government, carrier and educational sectors that have the need for fast, flexible, and geographically dispersed two-way internet/intranet access. The company has developed technology solutions that combine high performance, worldwide availability, and ease of installation, high reliability, and low cost to end customers. In addition, iDirect solutions offer unprecedented efficiencies, increased revenue opportunities and higher per customer gross margins to satellite network operators. Please visit www.idirect-tech.com.
Media Contact:
Magdalen Loh
AVP / Head, Corporate Communications
Singapore Technologies Electronics Limited
Tel: (65) 6413-1788
Fax: (65) 6484-8840
Email: magloh@stee.stengg.com
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