iDirect Technologies Enters $165M Agreement to Become Wholly-Owned Subsidiary of Singapore Technologies US Headquarters
Acquisition Will Greatly Expand iDirect's Market Reach and Product Suite
HERNDON, Va. -- August 30, 2005 - iDirect Technologies (iDirect), a privately held company that designs, develops and markets the fastest, most reliable bi-directional satellite-based broadband access solutions, today announced the company has entered into a definitive merger agreement with Vision Technologies Electronics, Inc (VTEE) to become a wholly-owned subsidiary of VTEE. VTEE is a subsidiary of Vision Technologies Systems (VTS), the US headquarters of Singapore Technologies Engineering Ltd (ST Engineering) and will acquire iDirect at an enterprise value of US$165m.
The purchase consideration was arrived at between VTEE and iDirect on a willing buyer, willing seller basis, after negotiations between the parties, taking into account iDirect's past performance, current profitability and future prospects. This transaction will be financed by internal cash resources and debt.
The transaction is subject to regulatory approvals and other closing conditions, including the approval of a majority of iDirect's stockholders at a special meeting. A majority of iDirect's stockholders have agreed to vote in favor of the merger agreement. Upon completion of the merger, iDirect will become a wholly-owned subsidiary of VTEE.
iDirect is a leading manufacturer of two-way internet protocol-based broadband satellite networking solutions. Its customer base includes over 100 companies in the telecommunications services, oil and gas, construction and marine industries, as well as government agencies. Founded in Virginia in 1994, it has 148 employees and offices in the United Kingdom, Italy and Hong Kong SAR. Winner of the 2004 Product Innovation of the Year award by Frost & Sullivan , iDirect has filed 13 patents and has invested approximately US$13m in R&D over the last five years. iDirect's unaudited turnover for first half of 2005 was US$37.1m.
"Joining the ST Engineering Group gives us the opportunity to penetrate new markets. Our products are highly complementary to ST Engineering's satellite communications technologies, and together we will deliver a more complete package of solutions to our customers. The iDirect team has been extremely successful and dedicated to growing our business and providing additional customer benefits. This opportunity will allow the team to take iDirect to even further levels of success."
John KEALEY CEO, iDirect
"The acquisition of iDirect extends ST Electronics' presence in the US and propels us to be a leading global satcom solutions provider. We now have a comprehensive satcom product offering with the integration of iDirect's satcom network equipment and our existing satcom front-end transceiver, marketed under our established Agilis brand."
SEAH Moon Ming President, ST Electronics Dy CEO (Electronics and Land Systems) & President (International Business), ST Engineering
"ST Engineering Group is gaining momentum in its acquisition drive to grow beyond Singapore. iDirect is a great addition for us in the key market of US and to our expanding global footprint. With this acquisition, all our four core businesses now have significant presence in the US and we're set to grow in this market."
TAN Pheng Hock President & CEO, ST Engineering
About iDirect Technologies
iDirect Technologies, a subsidiary of Vision Technologies Systems Inc., designs, develops, and markets satellite-based broadband access solutions targeted at the enterprise, government, carrier and educational sectors that have the need for fast, flexible, and geographically dispersed two-way internet/intranet access. The company has developed technology solutions that combine high performance, worldwide availability, and ease of installation, high reliability, and low cost to end customers. In addition, iDirect solutions offer unprecedented efficiencies, increased revenue opportunities and higher per customer gross margins to satellite network operators. iDirect was awarded the 2005 World Teleport Association Teleport Technology of the year, the Innovation & Technology of the Year by The ISCe Advisory Board, and named number one in the Deloitte & Touche Virginia Technology Fast 50 list of the fastest-growing U.S. technology companies. iDirect operates its corporate headquarters in Herndon, Virginia and has regional offices in Europe, Asia, and covering Latin America. Additional information is available on the company website at www.idirect.net.
About ST Engineering
ST Engineering is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenues of S$2.95 billion in FY2004. Its market capitalization of more than S$7 billion ranks it among the largest companies listed on the Singapore Exchange. ST Engineering has 12,000 employees worldwide, and over 100 subsidiaries and associated companies in 15 countries and 22 cities. Please visit www.stengg.com.
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Singapore Technologies Electronics Limited
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Singapore Technologies Engineering Ltd.
LIM Beng See
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