Swedish sub-system and component supplier Arkivator agreed to acquire 64 percent of the shares of LGP Telecom Inc., a subsidiary of Stockholm-based LGP Telecom AB, and offered to acquire the remaining shares.
“Arkivator has been a supplier of aluminum components to us for some time,” said Richard Tomasino, president of LGP Telecom. “Arkivator has been a strong company and very profitable, but their revenue growth has not been great and we’ve been looking around for someone who is looking to grow their revenue.”
Through the acquisition, Arkivator will become a manufacturer of tower-mounted amplifiers for mobile communications, and LGP Telecom will “start thinking about offering products manufactured by Arkivator,” according to Tomasino.
Upon acceptance of the acquisition by Arkivator’s shareholders, the number of Arkivator shares will increase from 9 million to 13.7 million, LGP Telecom said.
The acquisition will not affect any of the company’s employees outside of Sweden.
“We’ll actually be able to expand now because as a privately held company, we were under some constraints as to the number of investments we could make. We’re going to be three times the size we are now,” Tomasino said.
Tomasino said the company’s new name has yet to be decided.
Founded in 1993, LGP Telecom Inc. is based in Plano, Texas. It employs about 200 people involved in the research, development, marketing and sale of tower-mounted amplifiers and filters manufactured at its headquarters in Stockholm.
The company’s clients include systems suppliers Ericsson Inc., Nokia Corp. and Motorola Inc., and network operators BellSouth Corp., One2One and Pacific Bell.
