Petards Group Acquires UK Speed Enforcement Systems Firm QRO for GBP 1.255m.
15 April 2016 - UK-based security and surveillance systems developer Petards Group plc (AIM: PEG) has acquired the entire issued share capital of UK-based security and speed enforcement solutions QRO Solutions Ltd. for a maximum consideration of GBP 1.255m (USD 1.78m), the company said.
The consideration, which will be satisfied in cash from Petards existing cash reserves, includes deferred consideration of GBP 140,000 the payment of which is subject to QRO achieving revenues of at least GBP 1.75m and profits before tax of at least GBP 240,000 in the year ending 30 November 2016.
QRO was established over 15 years ago as a private business based in Northamptonshire providing end-to-end Automatic Number Plate Recognition security and speed enforcement solutions to UK police forces and to integrators serving the police and security markets.
The company's systems integration capabilities enables it to offer fixed site, mobile, re-deployable and hand-held ANPR systems which can be integrated into its own back office management suite of software; Check-IT ANPR, Check-IT CSGS, Check-IT Handheld and Multimedia Vault.
QRO, which employs 11 permanent staff all of whom will remain with the business post acquisition, will strengthen Petards' offering and provides a strong service-based operation with recurring revenues on which to expand further into the Emergency Services sector.
It will provide Petards with an entry into fixed site ANPR and complement the Group's existing ProVida range of mobile in-car enforcement products giving greater critical mass to the overall business and a wider customer base in the UK and overseas markets.
In the year ended 30 November 2015 QRO generated revenues of GBP 1.784m and profit before tax of GBP 101,000. Over 25% of its revenues related to recurring maintenance and similar contracts.
At 30 November 2015 QRO had net assets of GBP 683,000.
The QRO balance sheet at the date of acquisition includes cash balances of GBP 876,000.
Petards is a cash generative global supplier of products to original equipment manufacturers, system integrators and end users in the rail, security and defence markets in new build, refurbishment and retrofit applications.
The company offers ruggedised electronic solutions including video and sensor data surveillance, radio communications and threat simulation systems on mobile platforms.
Target: QRO Solutions Ltd
Buyer: Petards Group plc
Deal size in USD: 1.78m
Type: Corporate Acquisition
Buyer advisor: , ,