28th Jun 2019 14:34
(Alliance News) - Automotive testing systems manufacturer AB Dynamics PLC on Friday said it has bought Kangaloosh Ltd, trading as rFpro, for up to GBP21.6 million in cash.
rFpro, a current supplier to AB Dynamics, provides of engineering grade simulation software and virtual representations of public roads, test tracks and racing circuits. Its products are used in the development of advanced driver assistance systems, autonomous vehicles, and vehicle dynamics, and also have motorsport applications.
"The acquisition fits squarely in our stated strategy to develop the group through organic and acquisitive growth. Importantly, it provides the group with direct access to the potentially high growth simulation-based verification market for ADAS and autonomous vehicles, which complements our existing track testing business. It also enables the group to more rapidly develop and grow our existing aVDS simulator product line," said AB Dynamics Chief Executive James Routh.
The rFpro acquisition has been completed on a debt free basis for an initial cash consideration of GBP18.1 million with a conditional cash payment of up to GBP3.5 million subject to achievement of certain performance measures.
AB Dynamics expects the acquisition to be earnings enhancing in the first year following acquisition
Shares in AB Dynamics were up 0.2% higher at 2,480.00 pence each in London on Friday, giving the company a market capitalisation of GBP555.5 million.
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