M-Wave announces strategic acquisition purchasing assets of Jayco Ventures, Inc.
Mar 01, 2005
M-Wave, Inc. (NASDAQ: MWAV) announced the acquisition of substantially all the assets of Jayco Ventures Inc. [www.jviparts.com] ("JVI") for approximately $1.4 million.
M-Wave, Inc. forecasts its revenues of $17.4 million (unaudited) in 2004 that may rise to approximately $34.6 million for 2005, or nearly double, with the addition of 10 months of JVI projected revenues approximately $15.3 million.
Concurrently with the acquisition, M-Wave will split into two operating units. The Company's existing printed circuit board and related custom component business will become known as M-Wave EMG [Electro-Mechanical Group] under its newly named divisional president, Bob Duke, M-Wave's current VP of Sales and Marketing.
JVI assets will be operated by the newly formed subsidiary of M-Wave, Inc., M-Wave DBS [Digital Broadband Services], which acquired JVI, and will do business as JVI Technologies under newly named president Jason Cohen who founded JVI. Mr. Cohen and Joshua Blake, formerly EVP, directing engineering at JVI, who was named executive vice president of operations for the new company, have been given three year employment contracts with M-Wave DBS that provide base compensation, incentive pay based on revenue increases annually and five year stock options granted by M-Wave, Inc. under its 2003 Stock Incentive Plan, with exercise at current market rate.
"This is what we've been saying to our shareholders and the public for some time, when we stated that M-Wave would grow inorganically in 2005. We were indeed fortunate to find an acquisition where the blending of customers, employees, product, and services fit so well," commented Jim Mayer, M-Wave's Chief Executive Officer.