April 2, 2003 - TTP Communications plc (LSE: TTC) ("TTPCom") today announces that it has acquired Mobisys Telecom Co. Ltd. ("Mobisys"), the leading Korean GSM/GPRS terminal integration and design company. The acquisition is a major step in building TTPCom's capability to deliver GSM terminal systems solutions and improved support capability to its large and growing Asian customer base.
TTPCom's Systems Business provides customers with rapid time-to-market for GSM/GPRS mobile terminals based on a range of designs that meet the latest market requirements. Customers can tailor the designs to achieve the "look and feel" that differentiates their products in the market.
Based in Seoul, Mobisys was established by MinCheol Schin in March 2000 and has grown rapidly to become the leading independent GSM/GPRS terminal integration and design company in Korea. The Company has 24 employees. From the outset it has based its solutions on TTPCom software and has customers in Korea and China. Sales revenue for the year ended 31 December 2002 was KRW 2715m (£1.4m) and profit before tax was KRW 659m (£0.3m). Net Assets were KRW1683m (£0.8m). The acquisition price for the entire share capital of the Company is $3.0m (£1.9m) payable in cash. This will be increased by an adjustment for whatever cash is in the balance sheet at completion (approx.£0.3m). The amount payable to current employee shareholders, who represent over 50% of the share capital, will be paid over a two year period subject to the Company meeting certain agreed performance criteria over that period.
John Barber, Managing Director of TTPCom's Systems Business, said: "MinCheol Schin has built up in Mobisys one of the leading independent GSM/GPRS terminal development teams in Korea. Bringing our companies together is a great way to increase our capacity to meet the growing demand for terminal systems developments, as well as improving our capability to provide local support to our Asian customers".
MinCheol Schin, founder and CEO of Mobisys Telecom, commented: "We have been working closely with TTPCom's technology to deliver solutions for our customers for a number of years. This deal will allow the team much greater access to the technology and improve the flexibility of the solutions we can provide for our customers incorporating TTPCom's technology. The whole team is looking forward to this next phase of expanding Mobisys' business working with TTPCom."
Tony Milbourn, Managing Director of TTP Communications plc, added, " The Asian markets account for over 50% of our business. The acquisition of Mobisys Telecom is an exciting move for TTPCom. It will enable us to achieve a step-change in our systems business capability, and also increase the resources available to us in the region to support the substantial and growing opportunities that we see in Asia".