14th Aug 2012. Diversified Australian company, Hills Holdings Limited (ASX: HIL) has announced it has reached agreement to buy Lan 1. Lan 1 is a leading solutions provider of IP Storage, IP Networking, IP Security and IP CCTV and Access Controls. Terms have not been disclosed.
Lan 1 is expected to turnover in excess of $30M in financial year 2013 and provides engineering support, training, assistance with design and configuration and implementation of IP products. The acquisition is subject to a number of preconditions and is expected to complete in October. It is understood to consist of an upfront cash payment, with further cash payments over the next two years, subject to performance.
Lan 1 is based in Sydney with operations in key states. It is Hills intention to run Lan1 as a stand-alone entitity while leveraging its product range and network expertise to other Electronics &Communications businesses. Lan 1 managing director Daniel Lee will remain in his role, while the distributor’s 20+ staff will continue to operate out of Sydney headquarters.
Famous for the Hills Hoist clothes line, Hills Holdings consists of 32 business and 3000 staff separated into three categories – building and industrial; lifestyle and sustainability; and electronics and communications. Lan 1 will operate as a standalone entity within the latter.
Hills Chief Executive Officer, Mr Graham Twartz said “In recent years the businesses in our Electronics & Communications Division have all been experiencing the transition from analogue technology to digital technology. Access to products and services in support of IP and networking applications is important for the future development of our businesses.”
Mr Twartz noted “This acquisition demonstrates a further step in Hills strategic direction to invest in emerging and growing technologies to complement our market leading position in Electronics & Communications markets.”
Lan1 CEO Daniel Lee said “We are delighted to be joining the Hills team. Having Hills support and infrastructure provides us a platform to enable significant growth. Our technology offerings integrate extremely well into the Hills Electronics & Communications group and we look forward to working closely with them”.