ORBIT/FR, Inc. Agrees to Acquire RDL, Inc.
18 February 1998
ORBIT/FR, Inc. Agrees to Acquire RDL, Inc.HORSHAM, Pa., Feb. 17 -- ORBIT/FR, Inc. today announced that it has agreed to acquire substantially all of the assets of RDL, Inc., a supplier of sophisticated microwave test and measurement products to the wireless communications and cable television industries and of microwave defense systems. For the year ending March 31, 1998, RDL estimates that it will have revenues of approximately $13.0 million. The purchase price of the acquisition will be up to $8.0 million and will be calculated with a formula based on historical and future earnings. The acquisition is subject to certain conditions, including due diligence review and approval of the board of directors of ORBIT/FR. Aryeh Trabelsi, President and Chief Executive Officer of ORBIT/FR, stated that "the acquisition of RDL will expand and complement ORBIT/FR's product line for the wireless communications, satellite, aerospace and defense industries and will provide ORBIT/FR with an entree into the cable television industry. In addition, the acquisition will provide ORBIT/FR with high quality microwave production capacity." Mr. Trabelsi also stated that he believes that the acquisition will be accretive to ORBIT/FR's 1998 results. ORBIT/FR separately also announced today that principally as a result of the slowdown in revenues from the Far East, it expects that its revenues for the fourth quarter of 1997 will be materially lower than expectations. ORBIT/FR, Inc. develops, markets and supports sophisticated automated microwave test and measurement systems for the wireless communications, satellite, automotive and aerospace/defense industries. Certain information in this press release, including the statements regarding revenues and profits for 1997 and 1998, constitutes forward-looking statements pertaining to the future anticipated growth and profitability of ORBIT/FR, Inc. In accordance with the Private Securities Litigation Reform Act of 1995, all such forward looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not materially differ from expectations. Further information on potential factors that could impact results are included in the company's filings with the Securities and Exchange Commission, including the prospectus relating to the Company's initial public offering. SOURCE ORBIT/FR, Inc.