The Zimiti buy is for an initial £1.5 million but could rise to a total of £10 million based on the satisfaction of certain financial and operational targets between the completion date and 30 September 2013.

The deal marks the second acquisition for AIM-listed Digital Barriers in three months following its £4.85 million purchase of Essential Viewing Systems (EVS), a company which provides surveillance products.

Cambridgeshire-based Zimiti specialises in Unattended Ground Sensor (UGS) technology which is used in surveillance and protective applications in the defence and security sectors.

Colin Evans, managing director of Digital Barriers, says that Zimiti has a ‘compelling, high quality IP’.

Evans adds: ‘The Zimiti team is engaged with customers on the development of next generation UGS capabilities and we share their belief that this technology will have strong potential in both the defence and security sectors.

‘This fits very well with our own strategy.’

Zimiti reported turnovers of £144,000 for the year to date 28 February 2011, and loss before interest and tax of £301,000.

Under the terms of the deal, net assets of minus £1.1 million are to be settled as a deduction from the initial consideration.

According to a statement Digital Barriers believes that the international market opportunity for Zimiti’s UGS technology is particularly significant and is complementary to the core video surveillance services that Digital Barriers has already acquired.