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.
High speed rail must come to North East at same time as rest of the country, campaigners say
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."
Credit: Google maps
The Petards factory in Team Valley
|Printer friendly Cite/link Email Feedback|
|Publication:||The Chronicle (Newscastle upon Tyne, England)|
|Date:||May 14, 2018|
|Previous Article:||Sunderland desperate for takeover news, as the FA clarify the EFL transfer window is already open; EFL clubs agreed to close the transfer window...|
|Next Article:||The Alchemist in Newcastle is launching a new summer cocktail and food menu on Tuesday; Find out how customers can also help North East needy through...|