28th Apr 2014 07:42
LONDON (Alliance News) - Ultra Electronics Holdings PLC Monday said it will acquire Canada's Forensic Technology WAI Inc for CAD94 million in cash, with an additional payment of up to CAD6 million depending on earnings growth of the business over the next two years.
Ultra, a FTSE 250 defence, security, transport and energy company, said it has agreed to acquire Forensic Technology from private investors and its management team, which includes the company's founder.
Ultra said it plans to accelerate the development of Forensic Technology's document security and analytic products capability over the next nine to twelve months.
"It is estimated that this will require expensed development cost of around GBP1.0 million. This development cost, together with integration costs, means that Forensic Technology will be fully earnings accretive during 2015," the company said in a statement.
Forensic Technology is a Montreal-based specialist ballistics identification and forensic analysis company. It generated pretax profit of CAD8.9 million in 2013, with gross assets of CAD47.3 million.
Ultra Electronics said that Forensic Technology will continue to operate from its existing facilities as a bolt-on acquisition to Ultra's Tactical & Sonar Systems Division. It also said that Forensic Technology's core management team will stay with the business.
Ultra Electronics said the acquisition is subject to US regulatory approvals, and will be financed using its existing facilities and balance sheet.
Shares in Ultra Electronics were down 0.4% at 1,727.00 pence per share in early trading Monday, having reversed gains at the open.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
ULE.L