TUALATIN, OR — Waytronx, Inc. (OTCBB: WYNX) 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 Mr. Yamagishi, Mr. McKenzie, and Mr. 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.
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 impressive customer list, including such Asian stalwarts as Mitsubishi, Subaru, Japan Defense Force, Hitachi, and Toshiba, among others.
The Comex acquisition also provides 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 highly qualified 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.
By acquiring the associated distribution network, Waytronx also insures that it will be able to more completely penetrate the Japanese market with its current line of products developed and marketed by its US subsidiary, CUI, Inc.
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.
Filed Under: Electronics • electrical