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Team Valley's Petards on track for growth after snapping up Leeds software firm RTS; Petards has acquired RTS which is a transport software engineering specialist.

Byline: Coreena Ford

Gateshead tech firm Petards has acquired a specialist software firm in Leeds in a deal worth up to [pounds sterling]2.1m.

The AIM-listedTeam Valley firm- which employs more than 100 people - develops, supplies and maintains security and surveillance technologies used by the rail, defence and traffic technology sectors.

Now Petards is set to boost its software solutions offering by snapping up the entire issued share capital of RTS Solutions (Holdings) Limited and RTS Solutions (UK) Limited, a transportation software engineering company.

RTS' main clients arecurrently Network Railand its Tier 1 contractors and last year it generated revenues of [pounds sterling]778,000 and reported pre-tax profit of [pounds sterling]262,000.

Petards said the business is debt free and has a history of excellent cash generation and that its acquisition comprises an initial cash payment of [pounds sterling]1m and deferred consideration of up to [pounds sterling]500,000, conditional upon RTS meeting certain financial and other targets during the 12 months ending March 31, 2019.

A payment of [pounds sterling]600,000 will also be made for surplus cash in RTS's balance sheet.

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Going forward, RTS will operate as an independent company within the Petards Group from its offices at Holbeck Rail Depot in Leeds and all staff will be retained within the business as part of the acquisition.

In a stock market announcement, Petards directors said they believe that the acquisition will strengthen the group's software solutions offering and that it will provide the group with an entry into the UK rail infrastructure market complementing the group's existing eyeTrain on-board train systems.

Raschid Abdullah, Petards chairman said: "We are delighted to welcome RTS and its staff to the Petards Group and look forward to working with them to further develop and grow its business.

"This acquisition marks a further step in the broadening of the Group's portfolio of products, providing the opportunity to expand its earnings and enhance shareholder value."

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Credit: Google maps

The Petards factory in Team Valley

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Title Annotation:Business
Publication:The Chronicle (Newscastle upon Tyne, England)
Geographic Code:4EUUK
Date:May 14, 2018
Words:355
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