World-leading electronics designer, Silvertel, to be sold to discoverIE Group
Capital Law has advised the shareholders of Silvertel on the sale to discoverIE Group plc.
Founded in 1997, Silvertel is a UK-based designer of differentiated, high performance Power-over-Ethernet modules and complementary products for global industrial electronic connectivity markets. Based in Newport in South Wales, Silvertel sells its products in over 70 countries, and will become part of the Magnetics & Controls division of discoverIE, but retain its distinct brand identity.
discoverIE will acquire Silvertel for an initial cash consideration of £21m on a debt free, cash free basis, before expenses. An earn-out of up to £23m will additionally be payable subject to Silvertel’s performance over the next four years. Completion of the acquisition is subject to approval under the UK National Security & Investment Act, which is expected to be received later this quarter.
The shareholders were advised by Capital Law’s Gareth Williams-Davies, Melanie Williams, Hakeem Din, Nadira Islam and Sadie Vidal, together with specialist support from other teams. Momentum Corporate Finance advised the shareholders on the deal.
Melanie Williams, Capital Law’s Corporate & Private Equity Principal Associate, commented:
Steve, Chris, Sean and the team have built a wonderful business. This transaction is a great result for the shareholders but is also the start of an exciting new phase for Silvertel. It has been a pleasure working with Steve and the team on this local success story and we look forward to seeing the business continue its growth with discoverIE.
Steve Edwards, Founder & CEO of Silvertel said:
We are delighted to become part of the discoverIE group. From the moment we met Nick and the team, it was clear that discoverIE is an organisation that shares our values and will be a supportive owner for Silvertel.
Gareth, Mel and all of the team at Capital Law have been fantastic – they provided pragmatic advice and calmly guided us throughout the process.
