7th Feb 2017 09:10
LONDON (Alliance News) - Engineering and technology services provider TP Group PLC on Tuesday said it has agreed to pay up to GBP2.8 million to acquire ALS Technologies Ltd and Flexible Software Solutions Ltd.
ALS, based in Wincanton in Somerset, provides systems engineering and assurance capabilities for mission support, flight control, combat systems and tactical information systems for aerospace and defence industry clients.
Flexible Software, also based in Wincanton, makes safety-critical software for defence and commercial sector clients.
TP, which makes carbon dioxide removal equipment for submarines, heat exchangers and fabrication components, said the acquisitions will expand its specialist services provision in systems engineering and technical support, in addition to boost its software offering.
ALS made GBP4.3 million in revenue and GBP500,000 in pretax profit in the year to September 30, 2016, while Flexible Software made revenue of GBP200,000 and was approximately breakeven in the year to December 31, 2016.
TP Group will pay GBP1.3 million upfront for the two firms in cash, with a further GBP1.5 million due based on ALS and Flexible Software meeting performance targets in the 20 months following the acquisition.
"The enlarged group will bring critical mass to our services business and should stimulate growth in both ALS and FSS, as they benefit from greater market reach and presence delivered by TP Group," said Phil Cartmell, TP's chief executive.
TP Group shares were down 0.4% on Tuesday at 6.35 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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