Monday, December 12, 2005

SpectraLink Buys Telecom Provider

Boulder Colorado-based SpectraLink announced today that it is acquiring KIRK telecom, a provider of on-site wireless communications products based in Denmark. SpectraLink said that it would buy Kirk for approximately $61.3M in cash for the firm. SpectraLink will use the acquisition to increase its international reach, distribution channels, and geographic market penetration. The company said that the transaction is expected to close January 3, 2006. In conjunction with the transaction, SpectraLink obtained debt financing in the amount of $40M, in the form of a three year term loan and revolving credit. KIRK had revenues of $35.9M and net income of $2.7M in its fiscal year ending April 30, 2005. SpectraLink is a provider of Wi-Fi telephony solutions.