Journeo PLC (AIM:JNEO) is spending £13.7 million in cash and shares to acquire a company that specialises in the protection of critical national infrastructure, such as utilities and high security industrial and commercial applications.
The AIM-listed group, which has focused on technical services for the transport and local authority sectors, said it has completed the purchase of Crime and Fire Defence Systems Ltd (CFDS).
Wakefield-based CFDS provides products and services to enhance security for large, multinational energy, water, transport and communications infrastructure companies' assets from threats such as terrorism, sabotage, cyberattacks, and natural disasters.
It provides access control systems, perimeter intrusion detection, and thermal, infra-red and visual surveillance systems.
Journeo said CFDS has seen "excellent growth" in this market in recent years and brings a "strong pipeline", complementing its own client base and offering "exciting cross-selling opportunities".
Journeo will pay £10.7 million up front and £1 million in shares, with £2 million in deferred cash amounts to be paid after 12 and 24 months.
With CFDS carrying over £1 million of cash, the enlarged group is expected to still have a cash balance of around £9 million post completion.
CFDS reported revenue of £17.3 million and pre-tax profit of £1.4 million in the year to April.
The acquisition received National Security and Investment Act approval on 22 August.