Wireless coms firm Filtronic in £11m takeover of Isotek
Jul 30 2010 By Karen Dent
WIRELESS communications group Filtronic has unveiled expansion plans with the takeover of a Leeds firm.
Filtronic, which is run from Newton Aycliffe in County Durham, is paying around £11m for Isotek, which was set up in 2006 by Filtronic’s former wireless research and development team.
The acquisition of the firm, which makes filters for mobile phones to help make them 3G and 4G compatible, is expected tp add £15m to Filtronic’s revenues by 2012.
Chairman Howard Ford said: "This is a transformational deal for both companies which will be attractive to all stakeholders."
Filtronic, which has 125 staff in Newton Aycliffe, will pay around £11m for Isotek, made up of £4.4m in cash plus 18,550,000 new Filtronic shares.
Filtronic, which was spun out of the University of Leeds in the 1970s, has suffered recently as mobile phone operators continue to delay spending on telecoms infrastructure.
The company is expected to announce on Monday that it expects to make a small pre-tax loss this year, compared to analysts' previous expectations of a £500,000 profit.
