Halma PLC (LON:HLMA) is paying £21mln in cash to acquire Navtech Radar Ltd., a provider of innovative radar surveillance and safety solutions for use in highway monitoring, perimeter security and industrial applications.
The FTSE 100-listed leading safety, health and environmental technology group said Navtech – which is based in Wantage, Oxfordshire - will become part of the group's Infrastructure Safety Sector, with the existing management team to remain with the business.
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The company said the initial £21mln consideration is being paid on a cash-and-debt-free basis, funded from Halma's existing facilities.
It added that further earn-out considerations, capped at a total of £18mln, are payable in cash, dependent on profit growth in each of the three financial years to the end of March 2021.
The group said Navtech's revenue in the year to 31 March 2018 was £6.2mln and the acquisition is expected to be immediately earnings enhancing.
Andrew Williams, Halma's chief executive, commented: "Navtech is an exciting addition to our Infrastructure Safety business and builds on our existing strengths in sensing vehicles, people and assets for safety and control applications.
“It has valuable IP in radar-based hardware and software solutions and also adds a new presence in the fast-growing highway and critical infrastructure safety market niches.”
He concluded: “As well as adding these new capabilities to the Group, I am confident that Navtech will benefit from all of Halma's strategic Growth Enablers, including International Expansion and Digital Growth, to accelerate and sustain growth in the future."
In early morning trading, Halma shares were 3.1% higher at 1,350p.
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