DDC boosting expertise in power solutions with acquisition of Emrise Electronics Ltd.
BOHEMIA, N.Y., 16 July 2015. Executives of Data Device Corp. (DDC) in Bohemia, N.Y., are boosting their company's capabilities in power solutions with their acquisition of Emrise Electronics Ltd. in Durham, N.C.
The $22 million cash acquisition involves a stock purchase agreement to sell all issued and outstanding shares of the common stock of Emrise Electronics Ltd. The transaction is expected to close sometime this summer.
The deal, net of debt, transaction, and other related expenses and a holdback of $1.3 million in escrow is expected to yield net proceeds of about $11 million to Emrise. The Transaction has been approved by the Emrise board of directors and is subject to stockholder approval.
Emrise Electronics Ltd comprises XCEL Power Systems Ltd. and Pascall Electronics Ltd., which specialize in high-reliability power conversion products.
XCEL Power Systems and Pascall Electronics are focused on custom and semi-custom power supply solutions for a broad range of military and civilian aerospace applications including radar systems, cockpit displays and in-flight entertainment, as well as demanding applications in industrial markets.
"The acquisition of Emrise Electronics Ltd. greatly expands DDC's power management offering and capabilities, says Vincent Buffa, president and CEO at DDC. "Leveraging the synergy of our solid-state power controllers with XCEL and Pascall's power supply technology, DDC will be able to provide higher value, optimized integrated solutions for the commercial aerospace, defense, and industrial markets.
The acquisition also will help DDC pursue market opportunities in Europe, Buffa says. "This acquisition expands our business base in the European market with best-in-class power conversion products, while reinforcing DDC's position as a leading supplier of high reliability Connectivity, Power and Control solutions."
As for Emrise, the deal with DDC is part of an overall plan of liquidation and dissolution for an orderly wind down of Emrise’s business affairs. When the transaction closes, Emrise will distribute its proceeds to stockholders as part of the company's liquidation and dissolution.
Emrise has been involved in building electronic devices, subsystems, and equipment for aerospace, defense, industrial and communications. Emrise products include power supply and power conversion; radio frequency (RF) and microwave signal processing; and network access to public and private communications networks.