Acquisition of Mottech distributor in Texas

In brief · summary, not quotable

MTI Wireless Edge Limited has announced the acquisition of Interspec, a Mottech distributor in Texas, for a maximum consideration of approximately US$2.6 million, along with US$1.2 million in funding for business expansion. Interspec generated unaudited revenue of US$2.9 million and profit before tax of US$0.4 million for the 12 months ending December 31, 2025, with net assets of US$0.55 million. An additional earn-out of US$1.25 million to US$2.25 million is contingent on performance. This acquisition is expected to be earnings enhancing and establishes a direct platform for MTI's growth in the US market.

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Creates a platform for expansion in a large and strategically important market and is expected to be earnings enhancing

MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to announce the acquisition of Interspec, a Mottech Water Solutions Ltd (“Mottech”) distributor headquartered in Aubrey, Texas, US, for a maximum consideration of up to approximately US$2.6 million. MTI will also provide funding of approximately US$1.2 million to Interspec to support the expansion of the business.

Mottech, the Group’s water management business, provides advanced remote control and monitoring solutions for water and irrigation applications, based on Motorola IRRInet control, monitoring and communication technologies. As Motorola’s global prime distributor, Mottech serves customers worldwide through its international subsidiaries and a global network of local distributors and resellers.

Interspec has been a distributor for Mottech since 2011, when Mottech first received the distribution authorisation in the US from Motorola. Founded in 1998, Interspec specialises in wireless irrigation control systems for public parks, sports fields and community gardens operated by city councils, schools and housing associations. It has built a broad base of long-standing customers and established a strong position in its local market and is the largest value-added reseller for Mottech in the US.

For the 12 months to 31 December 2025, Interspec generated unaudited revenue of approximately US$2.9 million and profit before tax of approximately US$0.4 million. As at 31 December 2025, the business had no borrowings and unaudited net assets of approximately US$0.55 million.

Mottech is acquiring 100 per cent. of Interspec for an initial cash consideration of approximately US$0.36 million and will also provide funding of approximately US$1.2 million to Interspec to support the expansion of the business (together, the “Initial Consideration”). In addition, an earn-out consideration in the range of US$1.25 million up to US$2.25 million will be paid in July 2028, contingent on Interspec’s performance over the 12 month period from 1 July 2027 to 30 June 2028. The Initial Consideration will be funded from MTI’s existing cash resources. Interspec was previously named Interspec LLC and the company has been converted into a corporation named Mottech Interspec, Inc as part of its acquisition.

Interspec is MTI’s first acquisition of a Mottech distributor in the US, providing the Group with a direct operating platform in a large and strategically important market, along with a team that has strong technical skills to support future growth. The Group intends to build on this opportunity by investing in sales and marketing, expanding customer reach and increasing the range of Mottech products and services offered to both existing and new customers.

Interspec’s founders and owners, will continue to support the business until the integration process is completed, following which they plan to retire.

Alongside this transaction, an individual value-added reseller in Florida, US who has worked with Mottech for the past 15 years is retiring. The reseller has agreed that Mottech will contract directly with this reseller’s customers to ensure continuity of support and help to integrate these customers into Interspec, as required. This is expected to contribute approximately US$0.2 million of additional revenue to Mottech.

MTI’s CEO, Moni Borovitz, commented:

“Having worked closely with Interspec for many years, we are confident that this will be a successful, and earnings enhancing acquisition. The US is a valuable market with significant potential for Mottech to build-up a larger presence over time. Acquiring Interspec therefore represents an important first step in establishing a more direct presence from which we can expand further. This is likely to happen through the integration of other resellers within our network, alongside organic expansion into new territories.”

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