24th Jun 2019 12:23
(Alliance News) - MTI Wireless Edge PLC said Monday a wholly-owned subsidiary had acquired a 50% stake in its Australian reseller Parkland Australia Ltd for up to AUD800,000 in cash, equivalent to USD555,000.
Mottech Water Solution Ltd - a subsidiary of MTI - will pay an initial AUD600,000 on the closing of the acquisition. The remaining AUD200,000 consideration will be paid in two tranches in July 2020 and 2021 dependent on unspecified revenue targets being achieved.
Parkland Australia is the reseller of Mottech products in Australia.
For the year ended June 2018, Parkland generated AUD240,000 in pretax profit on revenue of AUD2.1 million. In 2018, MTI generated USD2.7 million in pretax profit on revenue of USD35.5 million.
"We are delighted with this earnings enhancing acquisition that will immediately contribute and will enable Mottech to step up the value-chain in the Australian market and provide wireless control solution and services," Mottech General Manager David Shani said.
"We expect the market for Mottech's core water management services in Australia to expand and we look forward to further applying Mottech's remote control and monitoring systems in the Australian market", Shani added.
Shares in MTI were 3.7% lower at 22.15 pence on Monday in London.
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