Turku, Finland, 2015-01-07 08:30 CET (GLOBE NEWSWIRE) --
TELESTE CORPORATION STOCK EXCHANGE RELEASE 7.1.2015 AT 09:30
TELESTE STRENGTHENS ITS POSITION AS END-TO-END VIDEO SURVEILLANCE AND INFORMATION SOLUTION SUPPLIER IN THE RAIL SEGMENT THROUGH ACQUISITION OF MITRON
Teleste has acquired the entire share capital of Mitron Group Oy Ltd. – the Finnish provider of public transportation information systems and modern display solutions. Systems manufactured by Mitron are used on trains and railway stations, subways, airports and in urban traffic. Mitron runs its design and manufacturing operations in Forssa and Tampere with subsidiaries in Poland, Germany and Switzerland. More than 90 per cent of the company's net sales consist of exports. Mitron strengthens Teleste’s position as a supplier of end-to-end video security and information management solutions for the rail segment.
This acquisition enables Teleste and Mitron to provide the rail industry with a comprehensive solution for stations and railway cars including a wireless data transmission between these two. The solution supports wireless offload from railway cars as well as real-time connectivity with live video transmission between railway cars and stations, and includes advanced passenger information and CCTV systems both on railway cars and at the station. For rail operators, the benefits of such an end-to-end solution include improved safety of operations and passengers, rapid and correct situation awareness, as well as better quality of passenger services through e.g. live onboard entertainment.
The security and information needs in the rail industry are expected to increase considerably in the near future and this transaction offers significant synergy opportunities for Teleste and Mitron to capture this growth. Mitron has an established customer base of major railway car manufacturers and rail operators, and this combined with Teleste’s strong customerships with major rail operators, its long-term experience and world class references from large networked video surveillance projects, as well as its solid financial status will create a strong combination as a rail transport solution provider.
In 2014, Mitron’s net sales exceeded EUR 22.0 million. The transaction is expected to increase Teleste’s 2015 net sales more than EUR 22 million and the impact on Teleste´s operating profit is estimated to be positive. While the impact of this acquisition on equity ratio will not be significant, Teleste’s gearing will increase moderately. The equity of the acquired company is approximately EUR 5 million and the total assets are approximately EUR 15 million at the closing date. The initial purchase price of the company’s entire share capital stands at EUR 8 million. This price may increase depending on the development of the net profit of the acquired company in the next two years. The initial purchase price will be paid mainly in cash. The transaction becomes effective on 7 January 2015. Through the acquisition Teleste personnel increases by 120 persons and Mitron’s current management will continue to be in charge of the business. The business will be integrated into the video surveillance business unit within Teleste’s Video and Broadband Solutions Business Area.
Teleste is an international technology company that develops and offers video and broadband technologies and related services. Our supply of technology contributes to the convenience and safety of daily living. Our core business is video - image and data processing, transfer and management. Our customer base consists of cable and telecom operators, as well as public sector organizations. Our business is divided into two divisions, which are Video and Broadband Solutions and Network Services. In both areas, we rank among the world's leading companies and technological forerunners. Video and Broadband Solutions focuses on access networks and product solutions in video surveillance applications. Network Services offers comprehensive services for network design, construction and maintenance. In 2013, Teleste's net sales totaled EUR 193 million, and the company employed more than 1,300 people. Teleste runs a worldwide network of offices and more than 90% of its sales are generated outside Finland. The company is listed on the NASDAQ OMX Helsinki Ltd. For more information see www.teleste.com
President and CEO
CEO Jukka Rinnevaara, phone +358 2 2605 866 or +358 400 747 488