6th Jul 2016 08:14
LONDON (Alliance News) - Engineering services provider Costain Group PLC on Wednesday said it has bought traffic-monitoring technology provider Simulation Systems Ltd for GBP17.0 million.
SSL provides integrated hardware and software-based services to the traffic monitoring and management sector. Customers include Highways England, Transport for London, the Scottish and Welsh governments, and a number of English county and city councils.
In the year ended March 31, 2015, SSL made revenue of GBP15.1 million and earnings before interest, tax, depreciation and amortisation of GBP2.0 million.
Costain has funded the acquisition through its existing cash and debt facilities and expects SSL to be fully integrated into its infrastructure division in the current financial year. The acquisition is expected to be earnings enhancing from 2017.
"We are delighted to announce the acquisition of SSL which is in-line with our stated objective of accelerating the growth of business through a combination of organic and acquisitive growth. This transaction will further broaden our ability to deliver innovative technology-based solutions to meet the increasingly complex requirements of our major blue chip customers in energy, water and transportation," Chief Executive Andrew Wyllie said in a statement.
Shares in Costain were trading up 2.4% at 292.50 pence on Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Costain