SCHAUMBURG, Ill.--(BUSINESS WIRE)--Sparton Corporation (NYSE:SPA) announced that its wholly owned subsidiary, Sparton Design Services, LLC completed the acquisition of Real-Time Enterprises, Inc., a $4 million revenue business, on January 20, 2015 in an all-cash transaction. RTEmd will continue to service its current and future customers out of its Pittsford, NY location.
RTEmd, founded in 1981, is a leading developer of embedded software to operate medical devices and diagnostic equipment through a disciplined approach to product development and quality/regulatory services with specific product experience such as patient monitoring, medical imaging, in-vitro diagnostics, electro-medical systems, surgical applications, ophthalmology, nephrology, infusion pumps and medical imaging. RTEmd is skilled at working within the customer's or its own compliant Quality Management System (QMS) supported by a quality & regulatory team that is clinically trained and experienced with FDA regulations and ISO 13485, ISO 14971, ISO 9001, and IEC 62304 compliance. From requirements through submission, RTEmd reduces their clients’ risk by ensuring software is developed in order to execute the regulatory strategies for medical device compliance.
"A key component of our strategic vision is to realize synergistic acquisition opportunities that add value to our core portfolio of products and services. Our acquisition of RTEmd aligns precisely with this vision and presents the opportunity to provide enhanced customer value. RTEmd’s capabilities complement our extensive electrical and mechanical design and manufacturing skills within the medical and biotechnology markets,” stated Cary B. Wood, president and chief executive officer of Sparton. “Additionally, RTEmd brings a highly skilled group of professionals with over 30+ years of development and regulatory experience with complex FDA compliant products.”
“We are excited to join the Sparton team,” stated Bob Ruppenthal, president of RTEmd. “With the additional support and enhanced capabilities Sparton has to offer, we will be able to provide our customers with additional value and access to other integrated services to meet their design and manufacturing needs.”
“We are resolute in our promise to maintain the customer as the center of our focus as we execute this integration to combine RTEmd’s capabilities with Sparton’s other multiple design center capabilities. We expect their revenue to enhance the Company’s Manufacturing & Design Services segment EBITDA and be accretive to earnings within the next nine to twelve months, once integration activities are complete,” Mr. Wood concluded.
The transaction was funded through Sparton’s borrowings under the credit facility currently in place.
About Sparton Corporation
Sparton Corporation (NYSE:SPA), now in its 115th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service, and refurbishment. The primary markets served are Medical & Biotechnology, Military & Aerospace, and Industrial & Commercial. Headquartered in Schaumburg, IL, Sparton currently has nine manufacturing locations and four engineering design centers worldwide. Sparton's Web site may be accessed at www.sparton.com.
Safe Harbor and Fair Disclosure Statement
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: To the extent any statements made in this release contain information that is not historical, these statements are essentially forward-looking and are subject to risks and uncertainties, including the difficulty of predicting future results, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in Sparton's filings with the Securities and Exchange Commission (SEC). The matters discussed in this press release may also involve risks and uncertainties concerning Sparton's services described in Sparton's filings with the SEC. In particular, see the risk factors described in Sparton's most recent Form 10K and Form 10Q. Sparton assumes no obligation to update the forward-looking information contained in this press release.