18th Sep 2018 10:00
LONDON (Alliance News) - Camera support products firm Vitec Group PLC announced Tuesday the acquisition of Rycote Microphone Holdings Ltd for up to GBP8.5 million.
Stroud-based Rycote makes noise-reduction equipment, and will join Vitec's Creative Solutions division.
Rycote posted revenue of GBP3.1 million for the 12 months to April, and adjusted earnings before interest, tax, depreciation, and amortisation of GBP800,000.
The deal is GBP6.0 million of upfront cash, and then GBP2.5 million depending on how Rycote performs.
As a result of the acquisition, Vitec said it now expects 2018 performance "slightly" ahead of expectations, "given further foreign exchange benefit and revised trading expectations".
Vitec Chief Executive Stephen Bird said: "I am delighted to welcome the Rycote team to the group.
"Vitec operates primarily in the video production market and this acquisition opens up the opportunity for us to enter the growing audio capture market, adding innovative and complementary products for our customers, and creating additional value for our shareholders."
Bird added: "Rycote has exciting product development plans that will add real value to Vitec and our customers, and we look forward to developing the business."
Vitec shares were 3.4% higher on Tuesday at a price of 1,360.00 pence each.
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