30th Apr 2015 07:54
LONDON (Alliance News) - CCTV and monitoring systems provider 21st Century Technology PLC on Thursday said it has struck a deal to acquire RSL Group for GBP1.3 million in cash and a loan note.
21st Century will pay GBP1.1 million in cash to acquire the assets, with a GBP0.2 million loan note with a 6% interest rate to cover the remainder.
Under the deal, it will acquire the Region Consultants Ltd, Region Services Ltd and RSL Cityspace Ltd business from RSL Group, which develops public information systems for bus travel.
The acquisition is part of 21st Century's strategy to diversify its earnings base by adding software capability and moving beyond providing individual products for CCTV, telematics and monitoring systems. The acquisition will move it towards integrated on-board technologies with connected and web based back-office software management applications, 21st Century said.
"This acquisition combines some important capabilities to develop new, class-leading products and services to help us grow our business and deliver enhanced value for money solutions to customers through our economies of scale," said Chief Executive Russ Singleton.
21st Century shares were up 13% to 5.78 pence in early trade, one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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