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Thursday, Apr 18, 2024

Universal Electronics Soars on Acquisition

Shares of Cypress-based Universal Electronics Inc., a maker of universal remote controls and related wireless devices, soared Friday, as investors cheered a recent acquisition.

The stock colsed up 30% Friday to a market value of $375 million.

Universal Electronics said late Thursday it bought China’s Enson Assets Ltd. for about $110 million in cash and stock.

Enson designs, manufactures and markets remote controls for TV makers.

As part of the deal, Universal Electronics also gets Enson’s subsidiaries, C.G. Development Ltd. and C.G. Technology Ltd., the company said.

The buy gives Universal Electronics bigger market share with its customers and also gives it a foothold in Asia.

“This acquisition further strengthens Universal Electronics’ leadership position in wireless control technology as it positions us to benefit from very promising international growth opportunities and significantly increases our market share,” Chief Executive Paul Arling said.

With Enson under its belt, Universal Electronics said it will add Sony Corp., Panasonic Corp. and Toshiba Corp. to its customer ranks.

The deal is set to add some $140 million to Universal Electronics’ top line and about $13 million to its profits next year, according to Chief Financial Officer Bryan Hackworth.

In the third quarter, the company reported profits of $5 million on sales of $79 million.

Universal Electronics sees about $300 million in yearly sales.

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