Cobham plc has completed its acquisition of leading Distributed Antenna System company Axell Wireless for up to 85 million pounds, or about $130 million.
The initial purchase price was about $91.3 million, with an addition cash consideration of up to about $38 million payable in 2014 and 2015 depending on performance.
Both companies are based in the United Kingdom. Cobham focuses on technologies including aerospace safety and refueling systems, as well as airborne communications in both military/defense and commercial markets. The company does about 25% of its business in the U.K. and European Union, and just over 50% in the U.S. Cobham CEO Bob Murphy said that the acquisition is a step toward Cobham achieving achieving “more balance” in its business portfolio.
Axell will become part of the Antenna Systems Strategic Business Unit within Cobham’s aerospace and security division. The DAS company focuses on both cellular and public safety indoor wireless markets, and its projects include the London 2012 Olympic Stadium, the metro systems in Beijing and Singapore, the Brisbane Airport tunnel, the Burj Khalifa Tower in Dubai (pictured above right), and the Shard skyscraper in London.
Axell was named a key leader in the DAS market by ABI Research in a report last year, which predicted that the in-building wireless equipment market will surpass $2 billion in 2013.
“Axell operates in an exciting and growing global market, bringing complementary technology to our existing businesses,” said Murphy.