7th Mar 2018 12:43
LONDON (Alliance News) - Vitec Group PLC said Wednesday it acquired Australia-based imaging products distributor Adeal Pty Ltd for GBP2.8 million.
Vitec - which makes photography and video products such as autocues and camera supports - said the AUD5.0 million, or GBP2.8 million, deal is expected to be earnings neutral in 2018 and "marginally" accretive in 2019.
In 2017, Vitec generated GBP27.4 million in pretax profit and revenue of GBP353.3 million.
Adeal - which will join Vitec's Imaging Solutions unit - formerly served as Vitec's distribution partner in Australia. The buyout will offer Vitec the opportunity for sales growth, margin consolidation and full control of channel management. In particular, ownership of Adeal will allow Vitec to consolidate its Imaging Solutions brands under one national distributor.
"This acquisition is a further step in the group's strategy to get closer to our customers and will build on our presence in the rapidly expanding Asia Pacific market," Vitec Chief Executive Officer Stepehen Bird said. "This is an exciting time for Vitec as we continue to launch innovative, new products for the fast growing 'image capture and sharing' market, and I am delighted to welcome the Adeal team to the group."
Shares in Vitec were 1.3% higher at 1,180.00 pence on Wednesday.
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