RFID solutions maker BOS Better Online Solutions Ltd. (Nasdaq: BOSC; TASE:BOSC) has acquired Summit Radio Corp. for $4.1 million in cash and 360,000 in BOS shares, amounting to 3.7% of its share capital. BOS will pay up to an additional $500,000 dependent upon Summit’s financial results in 2008 and 2009.
New Jersey-based Summit provides electronic components to the aviation and aerospace industries. The company’s two sellers shall continue to hold their management positions after the acquisition.
BOS expects to post a non-GAAP profit on more than $40 million revenue in 2008 as a result of the acquisition.
BOS president and CEO Shmuel Koren said, "I see this acquisition as an important addition to BOS's international activities, especially in the US. We believe that Summit's business is highly synergetic with the business of our supply-chain division. Summit's reputation, built over 50 years of operations, allows us to expand our supply-chain sales to major international aviation and aerospace manufacturers, as well as offer our RFID and enterprise software solutions to the US market."
BOS has a market cap of $23 million. The share fell 1.6% on the opening of Nasdaq, and was unchanged on the TASE.
Published by Globes [online], Israel business news - www.globes.co.il - on October 31, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007