Volex buys rest of Kepler SignalTek for up to $89.4M
What's the deal? VolexDealroom has a profile for this one. Try Dealroom → (LON:VLX) is acquiring the remaining 64.3% of Kepler SignalTekDealroom has a profile for this one. Try Dealroom →, taking its ownership to 100%. The transaction is valued at up to $89.4 million.
The terms: The deal is structured as $74.7 million in initial cash and $14.7 million in deferred consideration.
What's the endgame? Volex said the acquisition is expected to boost earnings immediately and improve its underlying operating margin.
Why now? Alongside the deal, Volex cut its share buyback programme to £20 million from a planned £40 million. Its shares rose 1.5% following the announcement.
The signal: Moving from a minority position to full ownership gives Volex complete control of Kepler SignalTek and a direct claim on its earnings — a bet that consolidation pays off faster than returning cash to shareholders.
Read more: Investing.com
Image credit: Mike Cattell
