Orolia and Digital Angel announced they have entered into an agreement for Orolia to purchase emergency beacon manufacturer McMurdo, a Digital Angel unit based in the United Kingdom, for $10 million cash.
Key terms of the transaction include $1.5 million to be held in escrow for up to 12 months to cover post-closing claims, warranties or indemnities.
A closing on the deal is set for Nov. 20.
"This transaction marks an important step towards focusing Digital Angel on a single core business, simultaneously giving us the ability to pay off our term debt and improve our working capital position," Digital Angel CEO and president Joseph J. Grillo said in a statement.
"This acquisition represents continued execution of our growth strategy to acquire and build technology businesses in positioning, navigation and timing," said Jean-Yves Courtois, Orolia chairman and CEO, in a statement.
"The addition of McMurdo to our portfolio of industry-leading brands complements our recent acquisition of Kannad, a leader in positioning systems for extreme environments," he added. "With the combination of these businesses in our positioning systems division, we believe that Kannad's strong presence in avionics segments and McMurdo's market leadership in location beacons in the maritime industry will provide significant opportunities to leverage distribution channels, build a strong division infrastructure, and extend our reach in growth segments for positioning applications."
Orolia is a technology group specializing in precise positioning, navigation and timing. Digital Angel is a technology company in the field of animal identification and emergency identification solutions.