NOTE takes over Mitec's operations in Borås
Canadian company Mitec Telecom Inc, which develops wireless network products, has been manufacturing electronics in Borås for some years through its wholly owned subsidiary Beve Electronics AB. Beve, with around 170 employees and sales of just over SEK 200 million, has world-leading expertise in the production of microwave electronics, with customers in the defence, medical and telecom industries. Since March this year, Beve is under reconstruction.
In early June, Mitec signed a letter of intent with Swedish Partnertech to sell Beve, a deal that was cancelled last week. Instead, a so-called asset deal is now being conducted with NOTE.
"Earlier this spring, NOTE proposed an asset deal, but we judged that it was technically simpler to implement a deal through a share transfer. Now that this option has been cancelled, the content of the business is being sold," says Rajiv Pancholy, CEO of Mitec, and continues: "This will be a good solution for customers, suppliers and employees. NOTE is a stable group that has shown growth and profits even in the recession, and NOTE will manage its business well."
Erik Stenfors, CEO of NOTE AB: "We realised early on that our business needed to change in order to develop. Our idea is to let the asset deal be the starting point for a NOTE Centre of Excellence, with a focus on microwave technology. We already have three other such centres of excellence in Sweden."
The agreement is expected to be ready for signing in August, after which NOTE will announce its strategy for the Borås operation in more detail. The agreement also includes an important part on global strategic co-operation between Mitec and NOTE, advised by CDI, Corporate Development International.
For further information, please contact
- Keith Findlay, CFO, Mitec Telecom Inc, tel: + 1 - 514 - 694 90 00
- Erik Stenfors, CEO, NOTE AB, tel. 0709 - 50 80 70
- Lille-Bror Rylander, CDI, tel. 08 - 613 08 20