Alternative Investment Market (AIM) listed Quadnetics has made a purchase with the buy of German-based Indanet AG for €10 million (£8.7 million).
Alternative Investment Market (AIM) listed Quadnetics has made a purchase with the buy of German-based Indanet AG in a deal worth €10 million (£8.7 million).
Warwickshire-headquartered Quadnetics is to pay an initial €2 million for a 51 per cent stake in Indanet, with a further consideration of between €1 million and €8 million for the remaining 49 per cent of the surveillance and security management business. The payment is based on Indanet’s profits for the period between deal completion and 31 May 2015, and on three separate payments.
Quadnetics provides surveillance technology and security networks. According to a statement, Indanet’s technology is complementary to Quadnetics’ Synectics divisions.
The deal brings to Quadnetics a strong base in Germany, says chief executive John Shepherd, which it has identified as the ‘ideal European base’ for expanding Synectics products into central, eastern and northern Europe.
Shepherd adds: ‘Culturally, Indanet is an excellent fit with our Synectics Divisions, as the deep engineering and technical backgrounds are very similar.
‘Strategically, Indanet has positioned itself in the driving seat with the most valuable customers in one of the biggest markets in the world for integrated surveillance systems.’
Quadnetics expects to provide €1.5 million of post-acquisition financing to enable Indanet to build on its geographic expansion and product range.
For the year to date 31 December 2010 Munich-based Indanet had a turnover of €5.7 million and profit before tax of €200,000.
The deal is the first for Quadnetics since its January purchase of battlefield electronic monitory systems business Persides Technology for a total of £260,000. Quadnetics recently released pre-tax profit figures of £2.6 million for the 18 months ending 30 November 2010.