RF INDUSTRIES, LTD. (NASDAQ:RFIL)
announced today that it has completed the acquisition of Long Island, NY-based Cables Unlimited, Inc., (CUI), a seller of high value fiber-optic cabling and connector products to enterprise and carrier network customers, for a total purchase price of $5,600,000, consisting of $2,800,000 in cash and 762,738 common shares. Privately-owned CUI had revenue of approximately $6,200,000 and non-audited non-GAAP adjusted EBITDA of approximately $645,000 in its most recent twelve months ended December 31, 2010.
RF Industries also announced that Darren Clark, the sole owner of Cables Unlimited, has been added as a new member to the Board of Directors of RF Industries. Darren co-founded Cables Unlimited, Inc. in 1992 and has been its principal executive officer since CUI's formation.
"This acquisition expands our product line into the fiber optics business and enables RFI to improve service for the three cable/connector markets that we have targeted: RF coaxial market; cabling products for the medical monitoring market, and fiber optic connectors and cable assemblies. Our largest customers, who have been seeking a reliable source of fiber optic cabling, have been encouraging RFI to enter this market. As a Corning certified 'Gold Member', a limited group of companies in the United States approved to deliver Corning's warrantied product line, we believe CUI's certification and expertise will support our expansion into the fiber optics marketplace. Additionally, CUI's large, modern Long Island, New York location gives us an East Coast presence and the relocation of some of our RF cable and connector operations to this facility will reduce delivery times and transportation expenses for many of our largest customers," said Howard Hill, President and CEO of RF Industries.
"CUI's recent contract wins and improving operating results are anticipated to increase RFI's profitability and cash flow, after one-time expenses related to the integration of the business, in the fourth quarter of the current fiscal year and throughout fiscal 2012," said Hill.