According to the asset purchase agreement signed today between Carmanah Technologies Corporation (TSX: CMH) and Cybernetica, Carmanah will acquire the navigation systems business unit of Cybernetica, including EKTA branded products and contracts.
According to Oliver Väärtnõu, chairman of the board of Cybernetica, the acquisition marks an important step in the company history. “EKTA is a world-renowned brand with decades of history and is a fitting addition to Carmanah’s global portfolio. This acquisition is an homage to the competence of not only Cybernetica, but the Estonian maritime electronics sector as a whole,” Väärtnõu says. Cybernetica will focus further on its core business in delivering mission-critical systems in the domains of information security and marine radio communication and surveillance.
According to Ülo Jaaksoo, chairman of the supervisory board of Cybernetica, the acquisition enables creating synergies to strengthen the growth strategies of both companies. „The history of the navigation systems business unit stretches back forty years, when it was first established as an independent R&D division within the Institute of Cybernetics. To see that the division has grown into a world-class marine solutions provider, is a clear sign of the dedication and effort of all the people involved,“ Jaaksoo says.
“The acquisition accomplishes two important steps in our growth strategy,”said John Simmons, Carmanah CEO.“The EKTA products will strengthen our worldwide product portfolio and allow us to provide more comprehensive single-source solutions for our marine customers. At the same time, the assignment of Cybernetica’s sales contracts adds to our overall market share and our position as the dominant provider in Europe.”
Management control of the new Estonian subsidiary will be effected by the management of Carmanah’s other marine business, Sabik Marine OY, located in Porvoo, Finland.
The transaction is expected to close in December 2016 and is subject to the satisfaction of certain closing conditions, including the receipt of all necessary approvals from the Toronto Stock Exchange.
About Carmanah Technologies Corporation
Carmanah designs, develops, and distributes a portfolio of products focused on energy-optimized LED solutions for infrastructure. Since 1996, we have earned a global reputation for delivering durable, dependable, efficient, and cost-effective solutions for industrial applications that perform in some of the world’s harshest environments. We manage our business within three reportable segments: Signals, Illumination, and Power. The Signals segment serves the Airfield Ground Lighting, Aviation Obstruction, Offshore Wind, Marine, and Traffic markets. The Illumination segment provides solar-powered LED outdoor lights for municipal and commercial customers. The Power segment serves both On-Grid and Off-Grid verticals.
About Cybernetica AS
Cybernetica is an R&D intensive ICT company that researches, develops and manufactures mission-critical systems, light signalling and telematics products, maritime surveillance and radio communications systems. Cybernetica has been an active counterpart in developing critical e-Government systems, such as the Estonian X-Road, i-Voting, e-Customs and others.
Cybernetica’s integrated management system is certified per the standards ISO 9001:2008 and ISO 14001:2004.