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.