New Zealand’s VC-backed Phitek Systems sold to US tech player

Credit:Pixabay

New Zealand-based audio equipment and technology developer Phitek Systems has been sold to New York-listed Amphenol Corp, providing an exit for a number of domestic VC investors. Phitek’s previous backers include Direct Capital-managed TMT Ventures and Stephen Tindal’s K1W1 investment vehicle.

TMT, which has been invested since 2005, has a direct 27 per cent and a 14 per cent holding shared with the New Zealand Venture Investment Fund. Meanwhile,  K1W1 owns 39 per cent.

Phitek designs and supplies aircraft in-flight entertainment interconnect products for the commercial aerospace industry. It generates annual sales of approximately $20 million. In the 12 months ended March 31, 2016, Phitek reported a profit of $3.9 million, up from a profit of $1.6 million a year earlier.

In a filing to the New York Stock Exchange, Amphenol said the Phitek purchase was part of a broader acquisition programme. The transaction was reported to around $60 million “before adjustments”, where Aphenol agreed to pay $60 million plus net cash, minus Phitek’s indebtedness.

“This acquisition strengthens the company’s global capabilities and enhances our product offering in this important end market,” said Amphenol chief executive R. Adam Norwitt in a statement.

Amphenol is also reported to have taken into account Phitek’s subsidies from Callaghan Innovation, setting aside $2.4 million of the purchase price to “satisfy future non-payment under an existing grant available to Phitek from Callaghan Innovation.” The company received government grants totalling $795,824 in the 2016 financial year and $485,463 in 2015.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.