Norsat satellite in Kuwait. Photo: Norsat.

Norsat International announced that it has entered into an arrangement agreement with Hytera Project pursuant to which Hytera will acquire all the issued and outstanding shares of Norsat for $10.25 in cash per share. The proposed transaction values Norsat at an equity value of approximately $62 million.

As previously disclosed by Norsat on March 17, Privet Fund Management submitted a non-binding letter of interest to acquire the company for cash consideration of $10.25 per share. At that time, Norsat and Hytera were in exclusivity with respect to a possible transaction. Based on Hytera’s offer of the same cash consideration as indicated in Privet’s non-binding letter of interest, along with synergies between Norsat and Hytera including a greater global sales presence, access to additional markets, and research and development collaboration, Norsat’s board of directors decided to proceed with the arrangement agreement.

Shareholders will consider the arrangement at an upcoming meeting, which will require the approval of at least 66.67 percent of the votes cast by shareholders. If approved, the transaction is expected to close in the second quarter of 2017.