According to a CDR statement, LSP currently sells approximately 300 systems per month and has established an installed base of over 20,000 systems.
Commander Managing Director, Adrian Coote said, "We will pay between $9.5m - $16.8m (dependent on future performance) for LSP. We anticipate the acquisition will deliver revenue from current product sales of approximately $20 million in the first 12 months following the acquisition. As a result, the acquisition will be earnings per share (EPS) positive immediately."
Commander considers the acquisition of the Samsung business as an extension of the strategy it embarked upon when it acquired RSL COM. Commander expects to gain significant synergies from selling network services into the existing installed base and bundling network services to new system sales.
The acquisition will be funded from operational cashflows and the undrawn components of Commander's $79 million line of credit with its bankers.
CDR shares closed up 4% to finish on $2.11 in brisk trading.