TELESTE CORPORATION STOCK EXCHANGE RELEASE 4.4.2007
TELESTE STRENGTHENS TECHNOLOGY AND SERVICE OFFERING BY ACQUISITION
Teleste Corporation has acquired DINH Telecom, the leading Belgian supplier of
house network technology and provider of network maintenance services for the
cable and telephone operators. The acquired company specialises in the design
and manufacturing of house networks customized to specific operator requirements
and the offering of network maintenance and repair services.
Founded in 1991 the company has focussed all the way on house network equipment
and the related technical expertise. In the Belgian market DINH Telecom is a
well-known and respected brand and the company operation is based on strong
technical expertise and local customer relations. The main operations of DINH
Telecom such as design are located in the Belgian city of Liege. Manufacturing
has been, for the most part, outsourced in Asia. The founder and principal owner
of DINH, Mr. Dinh-Debouny, will continue as Managing Director of the company.
The acquisition strengthens Teleste's presence in the Belgian cable network
market. For Teleste Belgium is one of the most significant market areas with 95%
of all households on cable.
Net sales of DINH-Telecom for 2006 amounted to approximately EUR 8 million with
good business profitability. The effect on Teleste's net sales in the second
half of 2007 is estimated round EUR 6 million. The deal boosts Teleste's
profitability for the current year while having no essential effect on Teleste's
equity ratio or gearing. The acquisition increases the number of Teleste
personnel by 20. The consolidated equity of the acquired companies at the time
of the deal equals about EUR 4.4 million with the balance sheet total amounting
to approximately EUR 5.8 million. The minimum contract price for the capital
stock stands at EUR 6 million. This price may increase depending on the
development of the net profit of the acquired company in the next two years.
Part of the contract price is covered with Teleste's own shares.
The objective is to develop network services provided for the operators locally
through the acquired company and incorporate these in Teleste's service
strategy. For this the key expertise and strong market presence of DINH-Telecom
create favourable conditions. Moreover, Teleste aims at expanding and
strengthening its product range particularly by including active components of
house networks while consolidating its design know-how in the field. Along with
Belgium the involved products will also be made available in Teleste's other
main markets. The acquired company will be incorporated in HFC Networks and
Services business unit being part of Teleste Broadband Cable Networks.
Founded in 1954 Teleste is an international technology group specializing in
broadband data communication systems and solutions. The Group is divided into
the strategic business areas of Broadband Cable Networks and Video Networks. The
clientele of Broadband Cable Networks includes cable operators with most of the
business taking place through direct customer contacts. Video Networks supplies
solutions involving optical signal transmission and video network management
software solutions designed for CCTV applications. Major part of this business
is conducted through system integrators. Both Business areas are among the
leading providers in their respective market areas and are recognized globally
for their know-how and ability to present technically cutting edge solutions on
continual basis. In 2006 the Group's net sales totalled EUR 101.8 million. At
the year-end the Group employed on average 621 persons. The company runs about
30 offices worldwide and more than 90% of Teleste's net sales are generated
outside Finland. The company is listed on the Helsinki Exchanges. For additional
information access www.teleste.com.
President and CEO
FOR MORE INFORMATION:
Mr Jukka Rinnevaara President and CEO, tel +358 2 2605 866 or +358 400 747 488