Richardson Electronics Limited, a subsidiary of Richardson Electronics, Ltd. (NASDAQ: RELL) today announced the signing of a definitive agreement to acquire the assets of Powerlink Specialist Electronics Support Limited (“Powerlink”).
Powerlink, a UK-based technical service company with locations in London and Dubai, services traveling wave tube (TWT) amplifiers and related equipment for the Satellite Communications market throughout Europe and the Middle East. The company generated revenues of £1.3 million during its fiscal year ended May 2011. This acquisition positions Richardson Electronics to provide cost-effective distribution, installation and service of microwave tubes to communications, industrial, military and medical users around the world.
“This is the first step in our strategy to make bolt-on acquisitions that take advantage of our existing infrastructure and maximize our channel to market. Powerlink has a long-standing history and excellent reputation in the satellite communication industry. The acquisition of Powerlink creates the foundation for our expansion into technical service centers which allows us to expand our share of the $1 billion microwave tube market. It also allows us to provide technical assistance to our power grid tube customers that do not have the capability to service their own equipment today which will help us increase power grid tube and related electronic component sales,” said Edward J. Richardson, Chairman and CEO of Richardson Electronics, Ltd.
The transaction is subject to customary closing conditions. The companies expect the transaction to close in early September.ABOUT RICHARDSON ELECTRONICS, LTD. Richardson Electronics, Ltd. is a leading global provider of engineered solutions, power grid and microwave tubes and related consumables, and customized display solutions serving customers in the RF and microwave communications, military, marine, aviation, industrial, scientific and medical markets. Utilizing its core engineering and manufacturing capabilities, the Company’s strategy is to provide specialized technical expertise and “engineered solutions.” The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair. More information is available online at www.rell.com. Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.