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2016-11-10

Bittium Oyj: Bittium Corporation acquires the ownership in Mega Electronics Ltd and MegaKoto Ltd specialized in healthcare technology and services

Stock exchange release

Free for publication on November 10, 2016 at 1.00 p.m. (CET+1)

Bittium Corporation expands its technology competence by acquiring the
ownership in Mega Electronics Ltd and MegaKoto Ltd specialized in
healthcare technology and services

Oulu, Finland, November 10, 2016 - Bittium Technologies Ltd, a
subsidiary of Bittium Corporation has today acquired the ownership in
Mega Electronics Ltd, specialized in healthcare technology, by
purchasing 100 per cent of the shares in Remega Ltd. Mega Electronics
Ltd is a fully owned subsidiary of Remega Ltd. Mega Electronics Ltd
owns 28.2 per cent of the shares in MegaKoto Ltd, a company
specialized in healthcare services, and has signed binding share
purchase agreements to acquire 100 per cent of the shares in MegaKoto
Ltd. The acquisition of the shares in MegaKoto Ltd will be completed
as soon as possible.

Mega Electronics Ltd, founded in 1983, is a Finnish ISO13485 certified
medical device manufacturing company. The company is specialized in
biosignal measuring for cardiology, neurology, rehabilitation,
occupational health and sports medicine. MegaKoto Ltd provides
comprehensive arrhythmia monitoring services for its customers such
as primary care centers, private clinics and hospitals.

The pro forma net sales of Remega group and MegaKoto Ltd was
approximately EUR 3.1 million in 2015 and pro forma operating profit
was approximately EUR 0.2 million. According to the preliminary and
unaudited accounts, the pro forma net sales of the acquired companies
in January-October 2016 was EUR 3.0 million and pro forma operating
profit EUR 0.4 million. The net sales in January-October 2016 grew by
58 per cent compared to corresponding period in 2015. The companies
employ altogether 28 persons and are located in Kuopio, Finland.

The debt free cash purchase price of the share acquisition, including
the purchase price of MegaKoto shares, is EUR 8.0 million, which will
be adjusted based on the level of cash, debt and networking capital
of the acquired companies as of completion of the acquisition. In
addition to the aforementioned purchase price, an additional purchase
price, capped at EUR 1.0 million, is payable upon the achievement of
certain financial performance targets for the acquired business
between January 1, 2017 and December 31, 2018. The potential
additional purchase price will be paid in cash after achieving the
goals. The acquisition has no significant impact on Bittium's balance
sheet, operating result and financial position, and it will not have
an effect on Bittium's financial outlook for the year 2016 published
on November 3, 2016 in the Interim Report January-September 2016.
Remega group and MegaKoto Ltd will be reported as part of Bittium
Corporation from the time of acquisition onwards.

With this acquisition Bittium will get the ownership of Faros product
family, focused on heart remote monitoring, NeurOne product focusing
on measuring the electrical activity of brain, and BrainStatus, a
disposable quick analysis headband used in emergency and intensive
primary care to diagnose for example epileptic seizures and brain
stroke, and other healthcare technology products. Faros devices are
EU medical device directive class CE class IIa and USA FDA 510 (k)
registered medical devices. MegaKoto Ltd is a private provider of
healthcare services approved by the Finnish National Supervisory
Authority for Welfare and Health having more than 70 health centers
and private clinics using its heart monitoring Kardiolog.fi service.

"Bittium has over 30 years of experience in mobile radio technology
and the acquisition today expands our technology competence to
healthcare technology, where mobile solutions are being increasingly
used in patient monitoring. The products and services of Mega
Electronics and MegaKoto and their strong experience in biosignal
measurement technology strengthens Bittium's offering for these
markets. Together we are able to provide for the healthcare market
global leading advanced solutions for patient care both in the
hospitals as well as in home care", says Hannu Huttunen, CEO of
Bittium Corporation.

"This acquisition expands Mega Electronics' competence in mobile
technology, giving us more resources to use and improves our
potential to respond to the needs in the growing market. Bittium's
strong R&D competence combined with our understanding of the industry
and our customer base strengthens the competitiveness of our
products", states Arto Remes, CEO and largest shareholder of Remega
Ltd and Mega Electronics Ltd.

Oulu, November 10, 2016
Hannu Huttunen
CEO
Bittium Corporation

Further information:

Hannu Huttunen
CEO
Tel. +358 40 344 3507

Distribution:

Nasdaq Helsinki Ltd
Main media

Bittium

Bittium specializes in the development of reliable, secure
communications and connectivity solutions leveraging its 30years
legacy of expertise in advanced radio communication technologies.
Bittium provides innovative products and customized solutions based
on its product platforms and R&D services complementing its
communications and connectivity solutions. Bittium offers proven
information security solutions for mobile devices and portable
computers. Net sales of continuing operations in 2015 were EUR 56.8
million and operating profit was EUR 2.3 million. Bittium is listed
on Nasdaq Helsinki. www.bittium.com

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http://news.cision.com/bittium-oyj/r/bittium-corporation-acquires-the-ow...
http://mb.cision.com/Main/13623/2119698/587750.pdf

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