Light Science Technologies Holdings PLC (AIM:LST), a specialist in controlled environment agriculture (CEA) technology and contract electronics, has acquired UK-based Tomtech (UK) Limited for £500,000.
Tomtech designs, manufactures and installs monitoring and control systems for commercial greenhouses and polytunnels and has been in operation for over 35 years.
The deal involves an immediate payment of £75,000, with the remaining amount to be paid in stages over the next 30 months. As of 31 December 2022, Tomtech held cash assets exceeding £140,000.
This acquisition will introduce new CEA revenue streams to LSTH, leveraging Tomtech's established business, which boasts a loyal customer base across the UK and Ireland. Tomtech's offerings, which include control systems, software, irrigation and lighting, align well with LSTH's current portfolio, presenting opportunities for artificial intelligence (AI) integration and enhanced market reach.
Tomtech has consistently reported profits, with unaudited profits before tax of approximately £79,000 on sales of around £680,000 for the year ending 31 December 2022.
The transaction is expected to help LSTH capitalise on the rising demand for AI and the internet of things (IoT) in farming, offering precision solutions to improve crop yields and profitability.
"Acquiring Tomtech enhances our ability as a group to take our products worldwide, offering a full range of products, which sets us apart from our competitors in this very important time for the CEA market where we are seeing extreme weather patterns worldwide affecting our food security," said chief executive Simon Deacon.