TTPCom, 7 layers AG sell UK joint venture for £11.4m
Cambridge-based mobile communications technologists TTP Communications plc, newly acquired by Motorola, and 7 layers AG said today they have sold their joint venture, 7 layers UK Ltd, to SGS UK Ltd for £11.4m.
7 layers UK is a test and certification business offering third-party test services for designers and makers of GSM, GPRS and 3G products and modules. It was set up in 2001 and was one of the three arms of the TTPComm plc group, along with TTPCom Ltd and ip.access Ltd, into which it recently brought other investors and cut its holding below 50%.
SGS is a leading inspection, verification, testing and certification company. It employs 46,000 people in about 1,000 offices and laboratories around the world.
The companies said in a statement to the London Stock Exchange that the deal involves an all cash transaction for the issued share capital of 7 layers UK, valued at £10.5m, plus £0.9m net cash. The money will be divided equally between TTP Comm and 7 layers AG.
TTP Comm plc said their estimated proceeds of £5.7m will be used to fund ongoing development programmes within its TTPCom Ltd subsidiary.
7 layers UK’s after tax profit for the year ended March 2006 was £909,000. Its net assets at that time were £2.87m.
The managers of 7 layers UK are expected to keep their jobs.
Completion is subject to the approval of the German Federal Cartel Office (Bundeskartellamt), a process that is expected will be completed by the end of August.
16th August 2006
