Funkwerk AG

M&A Activity • Oct 18, 2011

News Details

Ad-hoc | 18 October 2011 13:30

Funkwerk AG sells Funkwerk Enterprise Communications GmbH

Funkwerk AG / Key word(s): Disposal

18.10.2011 13:30

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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Funkwerk AG sells Funkwerk Enterprise Communications GmbH

Essential Cornerstone of Realignment

Kölleda, 18 October 2011 - Funkwerk AG (ISIN DE0005753149) sells Funkwerk
Enterprise Communications GmbH and thereby its enterprise communication
(EC) sector to Teldat group from Madrid, Spain. The signing now marks a
further cornerstone of the current realignment of Funkwerk AG to
concentrate on the three core sectors traffic & control communication,
security communication and automotive communication and further stabilises
the group's financial basis.

The SPA, which was signed today, comprises all shares in Funkwerk
Enterprise Communications GmbH, Nuremberg, and in its subsidiaries Funkwerk
IP-Appliances GmbH (Nuremberg), Funkwerk Aphona Communications GmbH
(Vienna, Austria), Funkwerk Enterprise Communications France S.A.S.
(Gradignan Cedex, France) and Funkwerk Enterprise Communications Italia
S.R.L. (Milano, Italy). The inactive subsidiaries FunkTech GmbH (Nuremberg)
und Funkwerk Enterprise Communications Iberia S.L. (San Sebastian de los
Reyes/Madrid, Spain) as well as the majority holding of Funkwerk Enterprise
Communications GmbH in Funkwerk ES Iberia S.L. (Majadahonda/Madrid, Spain)
form not part of the transaction. The SPA includes an agreed enterprise
value of about EUR11 m, out of which, after consideration of
interest-bearing liabilities, a purchase price and hence a net liquidity
inflow of approximately EUR8m is expected for Funkwerk AG.The final amount
depends on an assessment as of a qualifying date, which has not been
completed. Closing is subject to customary conditions precedent and the
consent of Funkwerk AG's bank consortium. Funkwerk's board of directors
assumes that the conditions precedent will be fulfilled and the consent of
the consortium banks be granted during the current financial year 2011.

Funkwerk Enterprise Communications GmbH is specialising in
telecommunication systems and solutions for data security. In the financial
year 2010, the group including the subsidiaries subject to the transaction
reached a turnover of approximately EUR28 m and a positive EBIT after
intercompany recharges of approximately EUR0.54 m. In the current business
year 2011 until 30 September, the enterprise communication sector generated
an equilibrated or even slightly positive EBIT and a consolidated turnover
of approximately EUR21 m. The average number of employees was 140. Teldat
group is a leading European technology holding company specializing in the
manufacture and distribution of IP solutions for the commercial sector, and
conducts business in 35 countries. In the financial year 2010, the holding
company had approximately 600 employees and achieved a turnover of about
EUR45 m.

For further information contact

Funkwerk AG
Im Funkwerk 5
99625 Kölleda/Thuringia
Germany
Jörg Reichenbach
Investor Relations
Phone: 0 36 35/6 00 -3 46
Fax: 0 36 35/6 00 -5 07
reichenbach@funkwerk.com

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Language: English
Company: Funkwerk AG
Im Funkwerk 5
99625 Kölleda
Germany
Phone: +49 (0)3635 600 0
Fax: +49 (0)3635 600 507
E-mail: info@funkwerk.com
Internet: www.funkwerk.com
ISIN: DE0005753149
WKN: 575314
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of Announcement DGAP News-Service

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