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Latest NewsOctober 2006ST Engineering Grows Electronics Business In The US Through US$20m Acquisition Of MÄK Technologies, Inc.Singapore, 4 October 2006 — Singapore Technologies Engineering Ltd (ST Engineering) today announced that its US company, Vision Technologies Kinetics, Inc (VTK), has entered into an agreement to acquire 80% of US-based MÄK Technologies, Inc. (MÄK) for US$20m (about $31.7m) or an enterprise valuation of US$25m (about $39.6m). The stake is being acquired from MÄK's two founding shareholders, Mr Warren Katz and Mr John Morrison, and other employees of the company. The founders, Katz and Morrison, will retain the remaining 20% of MÄK. VTK is a subsidiary of Vision Technologies Systems, Inc (VTS), the US headquarters of ST Engineering. The transaction is subject to customary regulatory approvals and other closing conditions. These investment terms were arrived at between VTK and MÄK on a willing buyer, willing seller basis, after negotiations between the parties, taking into account MÄK's past performance, current profitability and future prospects. This transaction will be financed by internal cash resources and debt. The acquisition is not expected to have any material impact on the consolidated earnings per share of ST Engineering for the current financial year. With the acquisition of MÄK, the consolidated net tangible assets per share of ST Engineering is expected to be reduced from 32 cents, as at end June 2006, to 31 cents (Singapore currency). MÄK is a world leader in simulation software to link, simulate and visualise the virtual worlds in a networked synthetic environment. The company builds commercial-off-the-shelf simulation tools and toolkits that are used in developing trainers and simulators, from sophisticated networked mission training simulators to desk-top training simulations. MÄK also uses its expertise to provide customised simulation solutions, and researches and develops the latest simulation technologies. Its customer base includes industry leading companies such as Raytheon, Lockheed Martin, Boeing, BAE and Thales. For fiscal year ended 2005, MÄK reported audited EBITDA of US$2.5m (about $4m). MÄK will continue to actively develop and support its best-in-class commercial-off-the-shelf toolkits for distributed simulation under the leadership of its founders, with its headquarters remaining in Cambridge, Massachusetts. As a US-based company under VTK, MÄK will retain its current security status. The acquisition will enable ST Engineering's electronics arm, Singapore Technologies Electronics (ST Electronics), to combine the expertise and capabilities of the two companies to create more sophisticated simulation products. Both companies have different areas of expertise that complement each other. In addition, the acquisition will provide a channel for ST Electronics to commercialise and distribute its complementary simulation intellectual property. Rapid technology advancement is accelerating the convergence of simulation and digital media technologies. ST Electronics has identified this trend as an opportunity to expand beyond its simulation business into new domains, such as computer video games and animation. MÄK, as a frontrunner in incorporating games technologies into simulation technologies, will further spur ST Electronics' thrust into the digital media business.
To view samples of MAK's simulation work, please click MÄK Technologies, Inc. was founded in 1990 and develops software to link, simulate and visualise the virtual world. The company creates tools and toolkits for distributed simulations, develops PC-based military tactical trainers, crafts custom solutions, and researches and develops the latest simulation technologies. Please visit www.mak.com. ST Electronics, the electronics arm of ST Engineering, delivers innovative system solutions to government, commercial, defence, and industrial customers worldwide. It specialises in the design, development and integration of advanced electronics systems, such as broadband radio frequency and satellite communication, e-government solutions, information communications technologies, rail and traffic management, real-time command & control, training and simulation, intelligent building management, and information security and mobile commerce solutions. For more information, visit www.stee.stengg.com 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 $3.34b in FY2005. Its market capitalisation of over $8b ranks it among the largest companies listed on the Singapore Exchange. ST Engineering has about 16,000 employees worldwide, and over 100 subsidiaries in 20 countries and 35 cities. Please visit www.stengg.com. Media contact:Magdalen Loh
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We're pleased to become a part of the ST Engineering Group because they recognise the value of our business model and understand our corporate philosophy. In addition, ST Engineering has significant intellectual property in the simulation space that we intend to commercialise and make available to our over 400 customers. This will both help our company grow faster, as well as provide a wider selection of more fully featured products, all bolstered by our renowned technical support.
Warren KATZ
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