Visonic soars on Tyco acquisition talks

The security systems company is in talks to be sold at a valuation of $90-105 million.

Electronic security systems and components developer Visonic Ltd. (TASE:VSC) today confirmed media reports that it was in acquisition talks with a subsidiary of Tyco International Ltd. (NYSE: TYC) at a company value of $90-105 million. The value reflects a 140-156% premium on yesterday's closing market cap.

Visonic's share price soared 83.2% by mid-afternoon to NIS 6.10, giving a market cap of NIS 256 million.

Visonic chairman and CEO Yaacov Kotlicki owns 71.4% of the company. The company held its IPO on the London Stock Exchange in 2004, raising $18 million at a company value of $65 million. It was floated on the TASE in June 2006 and delisted from the London Stock Exchange in 2010.

Visonic has two core businesses: Home security systems and components and personal emergency response systems manufactured in Kiryat Gat, and location systems for hospitals, prisons, museums, and other large organizations.

Visonic was an acquisition target in 2008 for a few million dollars when it fell on hard times, but the buyer withdrew the offer when the global economic crisis hit. Visonic has since recovered, posting a profit of $450,000 in 2010.

Last month, Tyco chairman and CEO Ed Breen told investors that the company was close to making an acquisition at a company value of $110 million. He did not mention the target company. "Although it's only $110 million, this is technology with real income, and it suits our core platform and will give us a competitive edge."

Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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