Through its Canadian subsidiary, Hexagon AB has acquired 93.3 percent of NovAtel Inc. following closure of its tender offer on November 27. Under the previously announced move, some 8,647,240 shares were acquired at the tender price of US$50 per share.
Through its Canadian subsidiary, Hexagon AB has acquired 93.3 percent of NovAtel Inc. following closure of its tender offer on November 27. Under the previously announced move, some 8,647,240 shares were acquired at the tender price of US$50 per share.
Meanwhile, NovAtel reported record quarterly revenues earlier this month, with third-quarter revenue reaching CDN$23.3 million (US$22.2 million), compared to CDN$19.0 million (US$16.9 million) in the similar period a year ago. Net income for the third quarter 2007 was CDN$5.3 million (US$5.1 million).
“Revenue for the third quarter of 2007 grew 23 percent compared to the similar period last year, and surpasses our previous record achieved during the second quarter 2007,” said Jon Ladd, NovAtel president and CEO. “We were able to achieve this despite the continued weakening of the US dollar relative to the Canadian dollar, which adversely affected revenue by approximately $1.6 million during the quarter, relative to the third quarter a year ago.”
Revenues in the nine months ended September 30, 2007 were CDN$65.3 million (US$59.2 million), compared to CDN$58.4 million (US$51.3 million) in 2006. NovAtel reported net income for the nine months ended September 30, 2007 of CDN$16.3 million (US$14.8 million).
Although approximately 98 percent of NovAtel’s revenues in the first nine months of 2007 were earned in U.S. dollars, the financial results are reported in Canadian dollars and in accordance with Canadian generally accepted accounting principles. The CDN/US dollar exchange rate has declined from an average rate of approximately CDN$1.14 per U.S. dollar in all of 2006 to a rate of approximately CDN $1.00 per U.S. dollar as of September 30, 2007.
Hexagon intends to acquire the remaining outstanding common shares of NovAtel not previously tendered by means of a compulsory acquisition process under Canadian law on the same terms as the common shares acquired under the tender offer. After the consummation of the compulsory acquisition, the Swedish company intends to delist NovAtel’s common shares and cease their trading on the Nasdaq Global Select Market.
Following the completion of the compulsory acquisition, NovAtel will become a wholly-owned subsidiary of Hexagon but will conduct its business relations with other subsidiaries of Hexagon on an arms length basis.
“Hexagon is excited for NovAtel to be joining the Hexagon group. We expect great things from NovAtel as it continues to operate independently and grow as a pure play supplier in the market for high precision Global Navigation Satellite System technology solutions to OEMs", says Ola Rollen, CEO and president of Hexagon AB.
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