Satellite Technology Feature Article
Codan Satcom Successfully Acquired by CPI International
By Carolyn J Dawson, TMCnet Contributor
Codan Limited’s (News - Alert) Codan Satcom business has been successfully acquired by CPI International Inc. and its parent company, CPI International Holding Corp. According to the acquisition agreement, Codan will be paid $9 million in cash, after specific adjustments have been completed. Solid-state radio frequency subsystems, developed and produced by Codan Satcom, are used in satellite communications services offered to commercial and government customers.
CPI is expected to gain nearly $20 million in yearly sales from this acquisition, which was financed completely with available cash. Codan stands to gain a maximum of additional $4.5 million from CPI, as earnout payments, subject to the accomplishment of finance and other objectives in the next couple of years.
In a release, Joe Caldarelli, CEO of CPI said, "With the addition of Codan Satcom's products and expertise to the CPI family, we look forward to introducing Codan Satcom's and CPI's customers to our complete line of satcom amplifiers, which operate at all satellite uplink frequencies and power levels. Depending on a customer's specific needs in a satcom amplifier, CPI can offer a customized solution using either solid-state or vacuum electron device technology."
For Codan, the operations located in Newton, South Australia and the Locus Microwave (News - Alert) operations located in Boalsburg, Pennsylvania comprise the Codan Satcom business. These businesses will now be incorporated with CPI's Communications & Medical Products Division in Ontario, Canada. CPI aims to transfer the Australian-based operations, comprising of design and manufacture C-band and Ku-band subsystems and block-up converters or BUCs, to its facilities in Canada within the next nine months.
Several main research and development personnel will be transferred from these operations to an upcoming engineering center of CPI in South Australia. X-band and Ku-band BUCs, mainly for military communications applications, are developed and produced at Locus Microwave. These operations in Pennsylvania will not be affected and will now operate under the brand name "CPI Locus Microwave." CPI aims to extend the scope and capabilities of the CPI Locus Microwave operations in the future.
CPI's portfolio of solid-state and satellite communications products has been extended with the purchase of Codan Satcom. The company now provides an extremely widespread range of satellite communications amplifiers in the industry.
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Edited by Brooke Neuman