SYDNEY, AUSTRALIA: Ambertech Limited has reached an agreement to acquire the Audio Visual (AV) Distribution business of Hills Limited.

The acquisition, which is subject to certain conditions and final approval by Ambertech shareholders, is expected to complete in mid December 2019 and includes the Hills AV businesses in Australia and New Zealand.

Under the agreement the majority of Hills AV personnel and brands will transfer to Amber Technology, ensuring continuity for both customers and vendors.

Consideration for the acquisition is anticipated to be, net cash, in the order of $5.5 million and includes inventory dependent on valuation at settlement; and Capitalized R&D.

Funding for the acquisition is being sourced via a capital raising by way of institutional placement and an underwritten Share Purchase Plan to all shareholders. Completion of the transaction is anticipated to occur mid-December.

The acquisition follows a strategic review of Hills’ distribution businesses. The review concluded that the AV Division was not well-aligned with Hills’ future strategy – which is to focus on health and security technologies.

The transfer of the business to Amber Technology, which operates entirely in the AV industry, will provide enhanced focus for the Hills brands, staff and customers.

“We are excited to have the opportunity to merge the Hills AV business into our existing Integrated Solutions group,” commented Peter Amos, Amber’s Managing Director. “We look forward to welcoming the Hills staff into our company, the Hills brands into our portfolio, and many new customers into a relationship with Amber Technology. We are 100% focused on serving the AV markets in Australia and New Zealand, and this is a wonderful opportunity for us to bring together two passionate and professional teams to create a stronger organisation that will better serve our customers and manufacturer-partners.”

David Lenz, Managing Director and CEO of Hills, added “Hills has a long history of participation in the AV markets in Australia and New Zealand. We have appreciated the support of our customers and suppliers over many years. However, our future lies in the health and security technology areas, and so we are very pleased to have found a new home for our AV colleagues, customers and suppliers at Amber Technology. We are confident that Amber’s focus on the AV market will deliver a bright future for all stakeholders.”