General Test Systems (GTS), a leading developer of Over-the-Air (OTA) measurement solutions, and TOYO, a Japanese test and measurement pioneer, this week announced that their respective boards of directors have approved a plan to form a new company called AeroGT Labs Corporation (AeroGT).
AeroGT will be located in Fremont, California, and will initially share office space with TOYOTech. It will have its own management team and the flexibility to implement its own strategies, allowing the company to focus and define its business activities to maximize growth.
The new company received financing commitments from GTS and TOYO to fund business activities during its initial ramp-up phase. Based on a sales pipeline developed over the past six months, AeroGT expects to be cash-flow positive by the end of its first year of operation and pay aggregate dividends to shareholders.
The transaction is expected to close in the early first quarter of 2022. When completed, GTS shareholders will own 51% of the common equity in AeroGT, and TOYOTech shareholders will own 49%. The transaction is subject to customary conditions, including final approval by said stakeholders and the approval of applicable regulatory authorities in People's Republic of China (PRC), Japan, and the United States. GTS is a privately held company, while TOYO trades on the Tokyo Stock Exchange.
AeroGT is expected to become a leading provider of OTA test and measurement products and offerings that serve markets across the globe, with a particular focus on the intelligent connected vehicles, consumer electronics, and satellite and terrestrial instruments segments and verticals.
Fred Yu, CEO of General Test Systems
While we have found immense success in our home country of the PRC, we continuously look to increase our business footprint elsewhere around the world. AeroGT unlocks the value of our solutions to global markets while strengthening the competitive positioning of our technologies.
Toshiya Kohno, CEO and President of TOYO
This is a transformative time for manufacturers that incorporate wireless technologies into their products, particularly for developers and producers of autonomous and intelligent connected vehicles. We are particularly excited that large markets in the United States and the European Union will be able to benefit from the solution offerings of AeroGT.
