Filtronic in £4.2m deal to sell Antenna Operations

MOBILE PHONE technology firm Filtronic has signed an agreement to sell its Telecoms Antenna Operations to Microdata Telecom Innovation Stockholm for an initial cash consideration of £4.2m.

Leeds-based Filtronic said the sale will complete on January 2. The deal is on a cash free-debt free basis with a further potential deferred consideration whereby Filtronic will take an equal share of the gross profit that outperforms mutually agreed gross profit targets.

Filtronic announced its intention to sell its Telecoms Antenna Operations in September following a strategic review.

It said the sale represents an important step forward and the sale proceeds will be used to develop its continuing businesses including 5G / X-Haul, public safety communications and defence & aerospace.

The group sees long-term potential to exploit its core strengths in all these areas.

Executive chairman Reg Gott said “I am delighted to confirm that we have signed an agreement with Microdata Telecom to purchase our Telecoms Antenna Operations.

“The sale strengthens our balance sheet, simplifies our business, and enables us to focus on business activities that better suit our core strengths.

“Microdata Telecom is an ambitious and rapidly growing company with a strong wireless telecoms pedigree.

“Being based in Taby, Sweden, it is well known to our Telecoms Antenna Operations and is an excellent destination for our staff, customers and products.”

Analyst Lorne Daniel, at FinnCap, said: “This marks an important step forward for Filtronic’s investment case as the company can now concentrate its focus and expand its investment in its core growth markets of 5G/X-Haul, public safety comms, and defence & aerospace.”