NZ tech company Rakon is buying the assets of French rival Temex for €400,000 euros, ($NZ717,000) gaining access to satellite and space station transport applications to complement its existing European operations.

The price is a significant discount to book value, reflecting "the need to invest time and new expertise into bringing Temex up to Rakon's exacting technical standards," said chief executive Brent Robinson. "The purchase will be funded out of existing operating budgets."

Temex will add applications such as Galileo navigation satellites, transportation vehicles for the International Space Station and aviation programmes, he said. "The volumes in these may not be large in themselves but the value is very high and enables us to further develop cutting edge technology which can then be applied to higher volume markets."

Temex's existing annual revenue is €11 million and Rakon expects "the aggregated business will begin to deliver modest returns in the near future and steadily grow over time as improvements are made."

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Source: BusinessDesk, www.nzherald.co.nz