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EMRISE Corporation Executes Agreement to Acquire Advanced Control Components, Inc.

Article Excerpt
Strategic Move Positions Company to Expand Its Business; Expected Increased Sales with U.S. Military, Other Government and Commercial Organizations

RANCHO CUCAMONGA, Calif. -- EMRISE CORPORATION (NYSE Arca:ERI), a multinational manufacturer of proprietary electronic devices and communications equipment for aerospace, defense, industrial, and communications applications, today announced it is implementing a strategic move to expand its business and increase sales to United States military and other government and commercial organizations by entering into a definitive stock purchase agreement to acquire Eatontown, New Jersey-based Advanced Control Components, Inc. ("ACC"). ACC is a privately-held, growing and profitable supplier of high performance radio frequency (RF) and microwave devices and subsystems serving the military, aerospace, commercial and instrumentation markets for more than 26 years. The terms of the stock purchase agreement commit the parties to a transaction with an acquisition price of up to $18 million in cash over a two year period, subject to certain adjustments and the achievement of specific performance criteria.

Chairman, President and Chief Executive Officer Carmine T. Oliva said, "ACC is an ideal strategic fit for EMRISE. We believe that ACC will provide us with a number of significant strengths, resources and synergies that will help generate incremental sales and profitability and will increase our domestic and international business over the near and long term. Through this acquisition we will gain access to the U.S. military market for RF devices, a market from which we have been excluded because our RF business is located outside the U.S. In addition, ACC's New Jersey location will provide us with a base of operations in the center of the East Coast military customer base. Finally, we believe that our existing presence on the West Coast will be helpful to ACC's business, and our subsidiaries in Europe will provide ACC with a strong distribution network for access to European markets."

The maximum $18 million all-cash purchase price for...