Tapping on funds raised from a recent rights issue, CSE Global is acquiring two US-based radio communications businesses for US$11 million – its second acquisition of a similar nature in less than three months.
The acquisition consists of Radio One Inc and Communications Service Co of Daytona. The seller is the Kurt D. Macdonald and Karen S. Macdonald Revocable Trust.
These two companies provide radio communications solutions, Federal Communications Commission licensing assistance, servicing and two-way radio rentals to enterprise and government customers.
Just last November, CSE Global paid NZ$25 million ($21.3 million) to buy a group of wireless communications businesses.
Based on the unaudited consolidated financial statements, the two US entities acquired have a combined net tangible asset value of US$3.4 million and report earnings of around US$3.5 million and operating profit of US$3.7 million for the year ended Dec 31 2022.
CSE Global, led by CEO Lim Boon Kheng, says that it has been engaged in radio and critical communications business in similar markets. The acquisition is seen as a “strategic fit” to its existing business.
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“The acquisition forms part of the group’s strategy to expand and grow its communications businesses in the infrastructure industry markets and participate in an expanding sector where demand for increased connectivity and security is expected to continue to grow.
“It is also envisaged that the acquisition will likewise strengthen the company’s existing business partner and customer relationships for its Communications business, as well as extend its geographic coverage into the USA market for its Communications business, thereby enhancing its market position in the USA market,” CSE Global adds.
CSE Global shares closed at 38 cents, up 1.35% for the day, and down 21.87% over the past year.
