Teleste - Company Announcement

TELESTE STRENGTHENS ITS POSITION AS END-TO-END VIDEO SURVEILLANCE AND INFORMATION SOLUTION SUPPLIER IN THE RAIL SEGMENT THROUGH ACQUISITION OF MITRON

Turku, Finland, 2015-01-07 08:30 CET (GLOBE NEWSWIRE) -- TELESTE CORPORATION 
STOCK EXCHANGE RELEASE  7.1.2015  AT 09:30 



TELESTE STRENGTHENS ITS POSITION AS END-TO-END VIDEO SURVEILLANCE AND
INFORMATION SOLUTION SUPPLIER IN THE RAIL SEGMENT THROUGH ACQUISITION OF MITRON 

Teleste has acquired the entire share capital of Mitron Group Oy Ltd. - the
Finnish provider of public transportation information systems and modern
display solutions. Systems manufactured by Mitron are used on trains and
railway stations, subways, airports and in urban traffic. Mitron runs its
design and manufacturing operations in Forssa and Tampere with subsidiaries in
Poland, Germany and Switzerland. More than 90 per cent of the company's net
sales consist of exports. Mitron strengthens Teleste's position as a supplier
of end-to-end video security and information management solutions for the rail
segment. 

This acquisition enables Teleste and Mitron to provide the rail industry with a
comprehensive solution for stations and railway cars including a wireless data
transmission between these two. The solution supports wireless offload from
railway cars as well as real-time connectivity with live video transmission
between railway cars and stations, and includes advanced passenger information
and CCTV systems both on railway cars and at the station. For rail operators,
the benefits of such an end-to-end solution include improved safety of
operations and passengers, rapid and correct situation awareness, as well as
better quality of passenger services through e.g. live onboard entertainment. 

The security and information needs in the rail industry are expected to
increase considerably in the near future and this transaction offers
significant synergy opportunities for Teleste and Mitron to capture this
growth. Mitron has an established customer base of major railway car
manufacturers and rail operators, and this combined with Teleste's strong
customerships with major rail operators, its long-term experience and world
class references from large networked video surveillance projects, as well as
its solid financial status will create a strong combination as a rail transport
solution provider. 

In 2014, Mitron's net sales exceeded EUR 22.0 million. The transaction is
expected to increase Teleste's 2015 net sales more than EUR 22 million and the
impact on Teleste´s operating profit is estimated to be positive. While the
impact of this acquisition on equity ratio will not be significant, Teleste's
gearing will increase moderately. The equity of the acquired company is
approximately EUR 5 million and the total assets are approximately EUR 15
million at the closing date. The initial purchase price of the company's entire
share capital stands at EUR 8 million. This price may increase depending on the
development of the net profit of the acquired company in the next two years.
The initial purchase price will be paid mainly in cash. The transaction becomes
effective on 7 January 2015. Through the acquisition Teleste personnel
increases by 120 persons and Mitron's current management will continue to be in
charge of the business. The business will be integrated into the video
surveillance business unit within Teleste's Video and Broadband Solutions
Business Area. 

Teleste is an international technology company that develops and offers video
and broadband technologies and related services. Our supply of technology
contributes to the convenience and safety of daily living. Our core business is
video - image and data processing, transfer and management. Our customer base
consists of cable and telecom operators, as well as public sector
organizations. Our business is divided into two divisions, which are Video and
Broadband Solutions and Network Services. In both areas, we rank among the
world's leading companies and technological forerunners. Video and Broadband
Solutions focuses on access networks and product solutions in video
surveillance applications. Network Services offers comprehensive services for
network design, construction and maintenance. In 2013, Teleste's net sales
totaled EUR 193 million, and the company employed more than 1,300 people.
Teleste runs a worldwide network of offices and more than 90% of its sales are
generated outside Finland. The company is listed on the NASDAQ OMX Helsinki
Ltd. For more information see www.teleste.com 

TELESTE CORPORATION

Jukka Rinnevaara
President and CEO



ADDITIONAL INFORMATION:
CEO Jukka Rinnevaara, phone +358 2 2605 866 or +358 400 747 488

DISTRIBUTION:
NASDAQ Helsinki
Main Media
www.teleste.com