MTI Wireless Edge acquires wireless company Mottech

Antennas developer and manufacturer MTI Wireless Edge said it will acquire Mottech, a provider of wireless control products for $4.75m in order to expand its business strategy.

The purchase is expected to be completed next May. The company said $4m will be paid upon closing and the reminder by 2018 based on the financial performance of Mottech in 2016 and 2017.

MTI expects the acquisition to enhance earnings thanks to strong revenue and profit growth potential after including wireless services in its business.

Chief executive Dov Feiner said: "We are delighted with this earnings enhancing acquisition that enables MTI to step up the value-chain and provide wireless control solution and services.

"We expect the market for Mottech's core water management services to expand and we look forward to applying Mottech's remote control and monitoring systems in other markets."

Following the news, shares in MTI jumped 6.58% to 10.12p on Tuesday at 11:58.