- Circa Enterprises Inc. (CTO) has approved a resolution to enter into a definitive agreement to acquire Westronic Inc.
- The transaction is expected to be completed in mid-May, following shareholder approval
- The acquisition of Westronic will give Circa a new product line offering with established technology and a proven track record
- The operations of Westronic are expected to be integrated with Circa’s facilities in Calgary, Alberta in the third quarter of 2022
- Circa designs, manufactures and supplies telecommunications equipment, cable and connectivity products to the telecommunications, electrical, and construction industries
- Westronic is a designer and manufacturer of intelligent device monitoring and alarm management solutions
- Circa Enterprises Inc. (CTO) is unchanged, trading at C$1.05 per share at 1 pm ET
Circa Enterprises Inc. (CTO) has approved a resolution to enter into a definitive agreement to acquire Westronic Inc.
The acquisition of Westronic would be completed by amalgamating Westronic and a new, wholly-owned subsidiary of Circa.
Circa, Westronic and holders of a majority of the shares of Westronic intend to execute an Amalgamation Agreement, and the transaction is expected to be completed in mid-May, following shareholder approval. Upon completion of the acquisition, the Westronic business will operate as a wholly-owned subsidiary within Circa’s Telecom segment.
Cory Tamagi, President and CEO of Circa, stated,
“The acquisition of Westronic will give Circa a new product line offering with established technology and a proven track record. Westronic’s monitoring and alarm management devices have a wide range of applications and are used within the telecommunications, oil and gas and other industrial segments. Westronic’s products are complementary to Circa’s Telecom product line and the acquisition will further expand the engineering, design and software capabilities of the Company. We anticipate the Westronic business to be immediately accretive.”
Circa will agree to pay the shareholders of Westronic approximately $3.3 million, in cash, subject to certain adjustments and holdbacks pursuant to the terms of the Amalgamation Agreement.
The transaction is anticipated to be financed from cash on hand and a new $5.0 million revolving term credit facility with the Royal Bank of Canada.
The operations of Westronic are expected to be integrated with Circa’s facilities in Calgary, Alberta in the third quarter of 2022.
Circa Enterprises Inc. is a public company headquartered in Calgary, with operations in Alberta and Ontario. Circa designs, manufactures and supplies telecommunications equipment, cable and connectivity products to the telecommunications, electrical, and construction industries.
Westronic is a designer and manufacturer of intelligent device monitoring and alarm management solutions to telecommunications, electric, water and gas utilities, OEMs, oil and gas companies and system integrators.
Circa Enterprises Inc. (CTO) is unchanged, trading at C$1.05 per share at 1 pm ET.