Thrane & Thrane Buys Nera's Satellite Units

Danish satellite communication equipment maker Thrane & Thrane said on Monday it bought the satellite units of Norwegian Nera for around half a billion Danish crowns ($61.5 million), sending its shares to a four-month high.

For the two units Nera SatCom and Nera WBA Satellite, Thrane & Thrane will pay 235 million crowns in cash and around three million new shares corresponding to around 40 percent of Thrane's total capital after a share capital increase.

"The intention is to create a leading manufacturer within satellite ground equipment with the strength to participate in both the mobile and the broadband market segments," Thrane said in a statement.

Thrane shares were eight crowns or 8.3 percent up at 104 crowns, while Copenhagen bourse's KVX growth index, of which it is a constituent, was 0.13 percent up. Shares in Nera opened 4.6 percent higher in 27.00 Norwegian crowns.

After the deal, which is dependent on satisfactory due diligence for both parties, the combined company will have an annual turnover exceeding 1.1 billion crowns and around 580 employees.

Thrane & Thrane expects the deal to yield annual synergies of 45-50 million crowns from the financial year ending April 30, 2003 and onwards.