Hills CEO, Graham Twartz said: "In recent years the businesses in our Electronics & Communications (E&C) division have all been experiencing the transition from analogue technology to digital technology. Access to products and services in support of IP and networking applications is important for the future development of our businesses."
He added: "This acquisition demonstrates a further step in Hills' strategic direction to invest in emerging and growing technologies to complement our market leading position in Electronics & Communications markets." The transaction is subject to a number of pre conditions and is expected to settle in October 2012.
According to Hills, Lan1 is expected to turn over in excess of $30m in financial year 2013 and provides engineering support, training, assistance with design and configuration and implementation of IP products.
Hills' E&C businesses span a wide range. Its web site lists these as being: Access Television Services; Antenna and TV Services; DGTEC; Direct Alarm Supplies; Hills Electronic Security, NZ; Hills Solutions Group; Hills SVL; OptiComm; Pacific Communications; Step Electronics; TechLife and UHS (Ultra High Speed).
In its half year results presentation in February Hills revealed that its E&C division had contributed $161.2m (29.2 percent of total) to revenues of $552.6m for the half year to 31 December 2011. For the six months to 31December 2010 it contributed $166.1m. EBITDA contribution for H1FY12 was 15.5 percent, up from $15.3m in FY11.
In the presentation Twartz revealed that demand for subscription TV services had dropped and that there had been slow growth in the Cygnus business. He said that the DGTEC business had been closed.
However it is still listed on the Hills web site where it is described as "A leading brand of consumer electronic products distributed through a range of high profile retail chains [that] in 2001...was the first company in the world to introduce the high definition set top box, and has continued to develop new products that leverage the latest advancements in entertainment technology."
Lan1 was founded in 1993 by its current managing director, Daniel Lee, and technical director, John Hamill. It is headquartered in Waterloo, Sydney and has branch offices in Brisbane, Melbourne and Perth.
It holds ISO9001 certification and is on the IT goods and services panel contract for Queensland local government entities and the NSW panel contract for the supply of telecommunications services and systems to state and local government entities. It lists its focus vertical markets as being local government and councils, and education.
In 2011 it was recognised by Motorola Solutions as Australasian distributor of the year for its wireless network solutions products for the seventh consecutive year.
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