Waytronx Acquires Privately Held Japanese Electronics/Distribution Conglomerate
Waytronx, Inc. announced that, effective July 1, 2009, it has acquired Comex Instruments Ltd. and 49% of Comex Electronics Ltd., along with the associated distribution network, both Japanese based providers of electronic components.
Effective immediately, Comex Instruments and its distribution network shall become CUI Japan Ltd., a wholly owned subsidiary of Waytronx. Kunio Yamagishi, Comex’s current Managing Director, shall remain as Managing Director of the new entity, while Matthew McKenzie, Waytronx’s Chief Operating Officer, will become the COO of CUI Japan Ltd. William Clough, Waytronx’s President & CEO, shall become Chairman of the Board of CUI Japan Ltd. – said Board to consist of Yamagishi, McKenzie, and Clough. Dan Ford, Waytronx’s Chief Financial Officer, shall become CFO of the new entity. Those same individuals will takeover the same positions with Comex Electronics. The company does not expect any organizational changes to CUI Japan Ltd’s operations in Asia.
Waytronx says the acquisition offers significant synergies for revenue growth. Comex Instruments and Comex Electronics’ combined 2008 gross revenues amounted to approximately $3.6 million. In addition, Waytronx will acquire Comex’s customer list, including such Asian stalwarts as Mitsubishi, Subaru, Japan Defense Force, Hitachi, and Toshiba, among others.
The Comex acquisition is also said to provide a manufacturing component which will allow Waytronx to manufacture many of its own products, such as the C14 encoder, in Japan. Comex’s in-house staff of nine hardware and software engineers will enhance Waytronx’s ability to develop and commercialize new technologies like the AMT encoder and its proprietary WayCool™/WayFast™ Technologies.
"Much like the CUI acquisition last year, this transaction effectively positions Waytronx for accelerated growth," Clough explained. "CUI Japan’s talent base of technical employees and their sales and distribution network will enable Waytronx and CUI to bring our portfolio of innovative technology solutions, services, and products to a previously untapped market. CUI Japan allows us to introduce our products into Asia through an Asian platform," Clough stated. "We are confident that we can grow Comex Instruments and Electronics’ revenues, while increasing sales and gaining significant market share for our current products."
Yamagishi concurred, stating, "I am gratified that the 20 plus year relationship we have had with CUI has resulted in this acquisition. The ability to sell the Waytronx/CUI product line directly into the Japanese marketplace, coupled with the access to capital provided by Waytronx will accelerate immediate growth of CUI Japan and Comex Electronics."
The purchase price is approximately $260,000. The acquisition was secured with an initial cash payment of approximately $105,000 due on or before September 30, 2009 to acquire Comex Instruments and 49% of Comex Electronics. The terms call for three equal annual payments over the next three years to acquire the remaining 51% of Comex Electronics. All three entities will be wholly owned by Waytronx at the end of the term and will operate as CUI Japan Ltd.
"This purchase is a significant milestone for Waytronx," Clough concluded. "The acquisition of CUI Japan, combined with our acquisition of CUI in 2008, creates a platform to strategically grow our revenues and demonstrates our commitment to increase shareholder value by acquiring both technologies and the infrastructures needed to commercialize those technologies."