Codan Limited Acquires Daniels Electronics

NEWTON, South Australia, Aug. 8, 2012 /PRNewswire/ -- Codan Limited (ASX: "CDA") has announced the acquisition of Daniels Electronics Limited (Daniels), a leading designer, manufacturer and supplier of land mobile radio communications (LMR) solutions in North America.

The acquisition, which is scheduled for completion on 17 August 2012, comprises an upfront cash payment of CAD$25 million (approx. AUD$24 million) with the possibility of approximately CAD$2.0 million (A$1.9 million) in additional payments if certain earn-out targets are achieved over the next 18 months. The funding for the transaction, also announced today, will be through a mix of debt and equity. The acquisition of Daniels delivers on Codan's stated strategy of growing market share and diversifying its radio communications product offering.

Codan Limited designs, manufactures and markets a diversified range of high value added electronic products, with three key business divisions; radio communications, metal detection and mining technology.

"The acquisition of Daniels begins a transition for Codan beyond solely HF systems to a communications solutions provider. Daniels provided the opportunity to enter the LMR market with a competitive and established product line," said Kevin Kane, president and general manager, Codan Radio Communications Division.

Daniels offers a broad range of land mobile radio communications used by specialised market segments, such as public safety, which require high performance and high reliability private communications networks. Key clients include fire services organisations, police, ambulance and other emergency service providers, military, forestry organisations, highways and road contractors and mining and exploration companies.

Daniels has an extensive distribution network and a strong public and private client base, predominantly located in Canada and the United States.

The business offers a catalogue of differentiated products which focus on power efficient infrastructure solutions, which are well suited to the needs of customers in the emerging world.

"Originally a family owned business, Daniels is very happy to be acquired by an Australian company that shares a similar history and culture and that will continue to grow the opportunities for our LMR products," said Daniels Electronics President and Chief Operating Officer, Robert Small.

With over 100 years of combined history and innovation in the radio communications market, the integration of Daniels into the Codan Radio Communications Division provides Codan with an established North American market and the opportunity to bring Daniels' product offerings to Codan's global distribution networks, especially in the emerging world.

"Land Mobile Radio is an outstanding complement to Codan's existing product line, distribution network and customer base. Many of Codan's customers already require solutions in addition to HF products, and most of our existing distributors are already active in the LMR market. Daniels' value proposition of interoperability and low power consumption technology is ideal for emerging international markets," said Kane.

About Codan

Codan Radio Communications designs and builds premium communications equipment for High Frequency (HF) radio humanitarian, security and protection applications. For over 50 years the company has earned a reputation for unsurpassed quality and customer service in the most demanding environments on earth. Founded in 1959 in South Australia, Codan is a globally active company that employs 500 employees worldwide. Codan's products are sold into more than 150 countries with exports representing approximately 90% of revenues. Codan excels in customer service and support throughout the world via a network of dealers, distributors and agents. For more information about the Codan Radio Communications Division, visit: www.codanradio.com.

About Daniels

For the past 60 years, Daniels has provided customers in North America and internationally with highly reliable Base Stations and Repeaters that are environmentally robust to operate in rugged and extreme temperature conditions where low current consumption (solar / battery powered) is a key requirement. Daniels has been a pioneering member of the P25 Digital standard, for radio system interoperability between emergency response governmental organizations, providing enhanced functionality and encryption. Daniels' self-servicing customers range from Forestry and National Park services through Police and Fire departments and on to Utility and Transportation groups. www.danelec.com

Media Contacts:

North American Media Contact:
Susan Sheppard, susan.sheppard@codanradio.com, +1-585-764-2377

Australian Media Contact: 
Holly Caruso, hollycaruso@codanradio.com, +61-407-095-986

Daniels Electronics Limited Media Contact:
Gerry Wight, Gerry_Wight@danelec.com, +1-250-382-8268

SOURCE Codan Limited