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Elcoteq acquires BroadTech to further strengthen its after market services offering

Elcoteq Buys BroadTech

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3/3/2011
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ESPOO, Finland -- Elcoteq SE, through its U.S. subsidiary, has on March 2, 2011, acquired 100 % of the shares of BroadTech Inc, a Lewisville, Texas based company which provides After Market Services (AMS). BroadTech is offering reverse logistics, repair, refurbishment and related information management services to the wireless and consumer electronics industries. The acquisition of BroadTech further strengthens Elcoteq's AMS offering in the U.S. and will serve as a global platform in developing Elcoteq's reverse logistics and quick turn-around repair services. BroadTech employs approximately 80 people.

The new business acquired is expected to generate additional sales in the AMS Business Segment in the range of approximately MUSD 15 - 20 on an annual level. The deal is expected to have a positive impact on the profitability of Elcoteq's After Market Services business already in 2011.

"This is a strategic step for Elcoteq in building a leading global After Market Services provider to the consumer and communications electronics industries. BroadTech adds key reverse logistics, repair, refurbishment and related information management capabilities to our service offering in a central location in Dallas Metroplex area", says Vesa Keranen, the Head of Elcoteq AMS Business Segment. "Combining these additional capabilities to our cost-effective high volume depot repair operations in Monterrey and Juarez in Mexico, will increase the value proposition to our combined customer base consisting of the leading original equipment manufacturers (OEMs), network operators, retailers and insurance companies".

"We are pleased to join Elcoteq's global organization", said David Lopez, President and Founder of BroadTech Inc. "This combination provides BroadTech with an access to greater resources and enables us to serve our customers with a true end-to-end solution for their reverse logistics, refurbishment and repair needs. I see this also as a great opportunity for BroadTech's employees". Mr. Lopez will continue managing BroadTech operations in Elcoteq organization.

Elcoteq Network Corp.

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