Cirtek sees higher sales after Quintel acquisition

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LISTED electronics and wireless broadband manufacturing firm Cirtek Holdings Philippines Corp. expects to generate $125 million in revenues for full-year 2017 following its acquisition of US-based Quintel Cayman Ltd.

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In 2016, the company booked $75 million in full-year revenues.

“If you look at their [Quintel] top line, I believe that it should significantly improve Cirtek’s growth. Our organic growth forecast is something like 33 to 35 percent year-on-year. With the Quintel acquisition, we should significantly see a better growth than the original forecast based on the organic operations,” Cirtek Chief Finance Officer Anthony Buyawe told a news conference following the signing ceremony held in Makati City on Monday.

Cirtek Holdings Chairman Jerry Liu (center) speaks to reporters during a press briefing at the Ayala Tower One in Makati City on Monday. To his left is Vice Chairman and President Roberto Dispo; to his right is Chief Finance Officer Anthony Buyawe. PHOTO BY ANGELICA BALLESTEROS

“I think our forecast revenue guidance for 2017 is $100 million. We’re probably looking at $95- to $100-million organic plus another $25 million for this year because of the five months’ consolidation, so we’re looking at $100- to $125-million topline,” he added.

For Quintel alone, Cirtek said it is poised to make $128 million for full-year 2018.

The company signed a definitive agreement with Trillium International Funds, as shareholder and representative of Quintel, for the 100-percent acquisition of Quintel for $77 million or P3.85 billion.

“Upon closing, the transaction will immediately give Cirtek a significant presence in the large and rapidly growing base station antenna market, estimated to be more than $14 billion by 2020,” the company said earlier.

The transaction will be funded through debt financing.

Quintel ramp-up
At the same briefing, Cirtek Vice Chairman and President Roberto Juanchito Dispo said the company will be forking out $33-million to ramp up the production of Quintel in the US.

“To scale it up, to ramp up the production from organically sourced, or internally sourced,” Dispo said.

It also plans to expand its footprint in other countries such as in Latin America and China.

Quintel is a US-based antenna solutions provider that helps mobile operators increase efficiency, enhance quality-of-service, slash costs and accelerate return-on-investment.

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