[SatNews] The Boards of Teledyne and Intelek have reached an agreement on the terms of a recommended cash offer that will be offered by the former for the ordinary share capital of the latter, via a public offer.

Intelek shareholders will receive 32 pence in cash for each Intelek Share. This values the entire existing issued ordinary share capital of Intelek at approximately 28 million pounds. The Intelek Directors, who have been so advised by Altium, consider the offer terms to be fair and reasonable for all concerned and their intention is to unanimously recommend Intelek Shareholders accepts the Teledyne offer.


Teledyne is a NYSE listed company with a market capitalization of US$1.4 billion and 2009 revenues of approximately US$1.8 billion. INtelek is an AIM quoted company in the business of designing and manufacturing electronic systems for satellite and microwave communciations, with a focus on the defense and SATCOM markets.

Robert Mehrabian, Chairman, President and Chief Executive Officer of Teledyne, said, "We are delighted that the directors of Intelek have decided unanimously to recommend the Offer to their shareholders which is at a significant premium to Intelek's share price in the 12 months prior to the Offer date. The combination of Intelek with Teledyne should place Intelek in a much stronger position to realise its growth potential". And Ian Brodie, Chief Executive Officer of Intelek, said, "The directors of Intelek have focused our strategy on further developing our satellite and microwave communications business as a core value driver for the Intelek Group. This Offer for Intelek is at a substantial premium and we unanimously recommend that shareholders accept this Offer".

Teledyne is organized into four business market segments...

• Electronics and Communications (defence electronics, including microwave devices, interconnects and imaging sensors; electronic instrumentation; and other commercial electronics, including aircraft information management systems)
• Engineered Systems (engineered systems for defence, space, environmental and nuclear applications)
• Aerospace Engines and Components (OEM and aftermarket general aviation piston engines and spare parts)
• Energy and Power Systems (energy generation systems, aviation batteries and military turbine engines)

Teledyne employs approximately 8,000 people around the world and is listed on the New York Stock Exchange (ticker: TDY), with a market capitalisation of approximately US$1.4 billion. Teledyne has a large established United Kingdom presence, with more than 4,000 employees. In 2008, Teledyne further expanded its United Kingdom presence with the acquisitions of TSS (International) Limited, Filtronic Defence Limited and Cormon Limited. Sales from United Kingdom operations currently represent approximately US$90 million.


Intelek has three divisions...

• Paradise Datacom — designs and manufactures satellite modems, transceivers, block up-converters, solid state power amplifiers, low noise amplifiers and associated equipment for the terrestrial segment of the satellite communications market. Paradise Datacom has sales, design and manufacturing facilities in both the United Kingdom and the United States
• Labtech — a manufacturer of microwave circuit solutions with specialist capabilities in design, manufacturing, assembly and testing across many technologies, product and market applications from defence electronics, global telecommunications to space and satellite communications. Labtech is based in the United Kingdom
• CML — manufactures precision machined and composite aerostructures for military and commercial aircraft. CML is based in the United Kingdom

Paradise Datacom's strength of product range and Intelek's success in penetrating new government programmes, combined with exciting long-term growth sectors such as internet and HDTV, give the Intelek Board confidence for the future. Labtech is expecting a similar pattern to last year, with a much stronger second half. CML has good sales expectations for the current year but its results are likely to be affected by the £0.4 million step function increase in composites' costs from the new enhanced facility, an important investment in the future of this operation.