Ultra Electronics acquires AEP for $57.5m

29th Sep 2011 12:25

High-tech defence products supplier Ultra Electronics has acquired AEP Networks, a supplier of secure network communication solutions, for an initial cash consideration of $57.5m. A further sum of up to $17.5m will be paid to the vendors based on financial results to the end of the year.The acquisition will be financed using Ultra's existing facilities and is expected to be earnings-enhancing in 2011 before the amortisation of intangibles. AEP's proprietary products are accredited by CESG/GCHQ, the UK government's national technical authority for secure electronic communications.The group's security solutions include remote access hardware encryption products and network gateways that provide secure access to business applications via web browsers. Chief executive Rakesh Sharma said: "AEP provides important complementary technologies and products to advance Ultra's strategy in the growing cyber security domain. AEP is a technology-rich company with strong intellectual property and wide global reach, operating in a fast-growing market place." The share price fell 0.58% to 1,541p by 12:30. NR