21st Aug 2018 13:20
LONDON (Alliance News) - Subsea cable protection firm Tekmar Group PLC said Tuesday it has agreed to acquire Subsea Innovation Ltd for up to GBP4.0 million from its founder.
Tekmar said the deal would be its first acquisition since it listed on the AIM market in June and launches its "strategy to acquire offshore energy businesses which have a clear technology focus, have complementary customer bases and can leverage group support."
Tekmar will pay an initial GBP2.0 million in cash and a further GBP1.0 million through the issue of new shares to Subsea founder Gary Ritchie-Bland. A further GBP1.0 million earn-out deferred payment will be payable based on pretax profit performance before the end of March 2020. Should pretax profit not be above GBP500,000 then no earn-out will be due.
To satisfy the share element of the initial consideration, Tekmar will issue 645,161 shares at 155 pence each. Shares in Tekmar were 9.0% higher at 169.00 pence on Tuesday.
"Our vision is to continue building on Tekmar's position as the global leader in subsea cable protection systems in the offshore wind market and to become the partner of choice for the supply of subsea protection equipment to the global energy markets," Tekmar Chairman Alasdair MacDonald said.
"The proposed acquisition of Subsea Innovation will bring new capabilities, new markets and strong cross-selling opportunities to the group," MacDonald added. "The independent directors are confident that Subsea Innovation's blue chip global client base will open up new sales opportunities for our offshore wind business. Equally, we expect Subsea Innovation to benefit from Tekmar's trusted name in offshore wind, opening up sales and supply chain opportunities for the previously wholly oil and gas focused business."
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