14th May 2018 10:32
LONDON (Alliance News) - Petards PLC said Monday it acquired transportation software firm RTS Solutions (Holdings) Ltd for up to GBP1.5 million.
Petards - a security and surveillance firm - will pay an initial GBP1.0 million on completion in cash. A deferred GBP500,000 will be paid should RTS achieve unspecified financial targets over the twelve months ended March.
For the year ended March 2017, RTS generated GBP262,000 in pretax profit on revenue of GBP778,000. For comparison, in 2017 Petards itself generated GBP1.2 million in pretax profit on revenue of GBP15.6 million.
Petards also will pay GBP600,000 in order to acquire the cash on RTS's balance sheet. All acquisition costs will be paid in cash from its existing resources and a new GBP1.3 million five-year bank term loan.
"We are delighted to welcome RTS and its staff to the Petards Group and look forward to working with them to further develop and grow its business," Petards Chairman Raschid Abdullah said. "This acquisition marks a further step in the broadening of the group's portfolio of products, providing the opportunity to expand its earnings and enhance shareholder value."
Shares in Petards were 4.3% higher at 26.90 pence on Monday.
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