SpectraLink to Acquire KIRK telecom
December 12 2005 - 7:45AM
PR Newswire (US)
Leading North American and European Wireless Telephone Providers
Will Join Forces to Deliver Expanded Product Portfolio to
Businesses Worldwide BOULDER, Colo., and HORSENS, Denmark, Dec. 12,
2005 /PRNewswire-FirstCall/ -- SpectraLink Corp. (NASDAQ:SLNK), the
North American leader in workplace wireless telephony, today
announced it has entered into a definitive agreement to acquire
KIRK telecom (KIRK), a leading global provider of on-site, wireless
communications products, based in Denmark. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050324/LATH060LOGO) Under the
terms of the agreement, SpectraLink will pay a total of DKr 388
million (approximately $61.3 million) in cash to purchase all the
stock of KIRK from its stockholders. The transaction is subject to
the completion of a number of conditions. Avondale Partners, LLC
served as exclusive financial advisor to SpectraLink in connection
with the transaction. The acquisition will significantly increase
SpectraLink's international reach by augmenting its distribution
channels and geographical market penetration, further extending its
leadership in workplace wireless telephony. The combination of the
two companies expands SpectraLink's product portfolio to include a
complete product portfolio that incorporates all major enterprise
wireless voice technologies (Wi-Fi, DECT and proprietary systems).
Under the transaction, which is expected to close Jan. 3, 2006,
KIRK will become a SpectraLink company while continuing to do
business under the KIRK name. SpectraLink obtained combined debt
financing of $40 million in the form of a three-year term loan and
revolving credit line. Those loans are secured by SpectraLink's
assets. The company will use a combination of debt and up to $30
million of its own cash to acquire all of the outstanding shares of
KIRK. Management believes that this acquisition will be accretive
to earnings in its first year. In its last fiscal year ended April,
30, 2005, KIRK had revenues of $35.9 million and net income of $2.7
million. KIRK scantel, a division that offers consumer-grade
telephones in Scandinavia, will remain a wholly-owned subsidiary.
"With this acquisition, SpectraLink will have an unrivaled breadth
and depth of expertise and products for workplace wireless
telephony," said John Elms, president and CEO of SpectraLink.
"Adding DECT technology expands our market potential in the U.S.
and also provides additional reach overseas for our Wi-Fi products.
The combined companies create a truly global organization with
significant distribution in more than 40 countries." DECT is a
widely adopted technology in both Europe and Asia-Pacific. Last
year in Europe alone, more than one million DECT handsets were sold
into the enterprise. There is now significant opportunity for
growth in North America as a result of regulatory changes made by
the FCC earlier this year facilitating the sale of DECT products in
the U.S. market. "By combining two well-established companies that
are leaders in workplace wireless telephony, we can provide
extraordinary selection and support to our customers and partners,"
said Peter Skov, managing director at KIRK. "I am proud that we are
entering into this acquisition and look forward to the combined
organization becoming a truly global leader in this industry," Skov
added. Through the additional distribution channels gained in the
acquisition, SpectraLink will continue to drive workplace Wi-Fi
adoption by making its NetLink Wireless Telephones available to
more enterprise customers across Europe and Asia. Staff worldwide
in industries such as healthcare, retail and hospitality will
benefit from increased productivity, improved customer service and
more efficient communication. SpectraLink will hold an audio
webcast to discuss this acquisition today, Dec. 12, 2005, at 11
a.m. Eastern time. You can access the webcast and replay at
http://www.spectralink.com/. About KIRK KIRK telecom is a privately
owned Danish company, developing, manufacturing and marketing
wireless communication solutions. KIRK telecom is a
well-established and leading player on the market for wireless
on-site communication solutions based on license free radio
standards. Products are sold under the KIRK brand as well as
incorporated into OEM solutions. Read more at
http://www.kirktelecom.com/ About SpectraLink SpectraLink, the
North American leader in workplace wireless telephony, delivers the
power of mobile voice and messaging applications to businesses
worldwide. Seamlessly integrating with VoIP and traditional
telephony platforms, SpectraLink's scalable technology provides
instant access to people and business-critical information.
SpectraLink handsets free on-premises employees to be more
accessible, productive and responsive. For more information, visit
http://www.spectralink.com/ or call 1-800-676-5465. This release
may contain forward-looking statements that are subject to many
risks and uncertainties, including satisfaction of the closing
conditions to the transaction; the expected timetable for
completing the transaction; difficulties in integrating the
operations, technologies, products, and personnel of SpectraLink
and KIRK; benefits of the transaction; expectations that the
acquisition will be accretive to SpectraLink's results; the
unpredictable growth in international sales; new mergers or
acquisitions may not result in increased future sales of
SpectraLink's products and services; OEM agreements with
SpectraLink that impact margins and may not result in increased
future sales of SpectraLink's products or services; adverse changes
in economic and business conditions affecting SpectraLink's
customers; the intensely competitive nature of the wireless
communications industry, and a customer preference to buy all
telephone communications systems from a single source provider that
manufactures and sells PBX or key/hybrid systems; changes in rules
and regulations of the FCC; and the anticipated growth of the
market for on-premises Wireless Telephone Systems; and inherent
risks involved in integrating acquisitions. More information about
potential risk factors that could affect our results is available
in SpectraLink's filings with the Securities and Exchange
Commission on Form 10-K for the year ended December 31, 2004, and
subsequent Form 10-Q filings.
http://www.newscom.com/cgi-bin/prnh/20050324/LATH060LOGO
http://photoarchive.ap.org/ DATASOURCE: SpectraLink Corp. CONTACT:
Michelle Greene of SpectraLink Communications, +1-303-583-5321, or
mobile, +1-303-589-5226, , or Bob Husted of SpectraLink Investor
Relations, +1-303-583-5350, or mobile, +1-303-249-8946, ; or North
America, Christine Simeone of Lois Paul & Partners,
+1-781-782-5773, or mobile, +1-617-834-9923, , for SpectraLink
Corp.; or EMEA, Sally O'Neill of LEWIS PR, +44 20 7802 2626, or
mobile, +44 7703 531 220, , for SpectraLink Corp.; or Tine Svane
Hansen of KIRK telecom, +45 76 28 12 20, or mobile, +45 29 63 73
20, ; or Nina Lusty of LEWIS Denmark, +45 32 95 25 61, or mobile,
+45 30 24 72 84, , for KIRK telecom and SpectraLink Corp. Web site:
http://www.kirktelecom.com/ http://www.spectralink.com/
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