SCANDINAVIAN MERGER MAY CREATE GLOBAL LEADER
Scandinavian satellite manufacturing businesses Nera ASA and Thrane & Thrane said they would merge. Agreement calls for Thrane & Thrane of Denmark to acquire Nera satellite communications division -- Nera SatCom AS and Nera WBA Satellite AS. Nera, based in Bergen, Norway, will receive 40% stake in combined company in addition to cash settlement of $28.8 million. Nera develops, manufactures and markets fixed, wireless and satellite communication equipment and systems, including point-to-point, point-to-multipoint radio link equipment, satellite terminals, land earth stations (LES). Companies said goal was to create international satellite ground equipment manufacturer strong enough to participate in both mobile and broadband segments and to develop global presence with network of 175 distributors in 60 countries.
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Deal is subject to approval of Nera’s board, Norwegian regulatory authorities and Thrane & Thrane stockholders, Nera said. It said merger is expected to make Nera largest supplier of mobile satellite communications equipment with research departments focusing on satellite broadband development.
Agreement is “foundation for more future-oriented business” with expanded opportunities for employees, Nera CEO Bjorn Ove Skjeie said: “Our financials are strengthened, and we may continue to strengthen our position within the business areas of networks and wireless broadband access.” Shareholder agreement stipulates Nera that will reduce ownership interests in company to 31% or combined level of 2 major shareholders.
Thrane & Thrane and Nera SatCom have synergies in mobile satellite communications market, Nera said. Merged company will have turnover of $135 million and 580 employees, including 235 in R&D. Both companies have vested interest in Inmarsat. Thrane & Thrane has agreement to develop equipment for Inmarsat 4 next- generation satellite while Nera has deal to supply equipment designed for satellite broadband communications. Majority of Nera’s satellite business involves terminals and earth stations for Inmarsat. Other business interests include satellite-based broadband access equipment and development, production and sale of terminals and gateways based on DVB-RCS technology and for proprietary iPSTAR satellite system.