Business
Acquisition
Acquisition.
About this update from Checkit Plc
[{"type":"text","content":"\n \nRNS Number : 0335Z Elektron Technology PLC 15 May 2019 \n\nElektron Technology Plc\n(AIM: EKT, \"Elektron\" or the \"Group\")\n \nAcquisition\n \nElektron Technology Plc is pleased to announce that it has acquired Next Control Systems Limited (\"Next\"), for a cash consideration of £10.5m, inclusive of £1.7m of cash in Next as at the date of completion. The price represents a multiple of 6.6X 2018 EBITDA and the deal is expected to be immediately earnings accretive for Elektron.\n \nNext is an excellent strategic fit for Checkit, providing technology and software that enables management teams to monitor, control and optimise business processes. Next will be combined with Checkit to create a global leader in the field of real-time operations management.\n \nThis is a transformational deal for Checkit, immediately adding scale and one which the Board believes will significantly accelerate the path to profitability at Checkit.\n \nBackground on Next\nNext, based in Fleet, Hampshire, UK, has been helping management teams to improve productivity and profitability for over 25 years.\n \nThrough its Tutela brand (www.tutelamedical.com) Next is a leader in high-end service based temperature monitoring for healthcare and life sciences within the UK. In addition, through its Next and Axon brands (www.nextcontrols.com; www.axon.eco) it provides data related Building Energy Management System (\"BEMS\") services. Next has a major relationship with a leading UK retailer covering smart building and plant technologies.\n \nBenefits of the Transaction\nCheckit's services transform the performance of common low and medium volume operational processes in global industries, moving them from form based systems, spreadsheets and even pen and paper to the Cloud, through a subscription based SaaS model.\n \nThe acquisition of Next, which is a compelling strategic fit, will add immediate scale to Checkit, increasing turnover eight-fold and providing significant opportunities for further sales growth and improvements to operational capabilities, including:\n \nØ Offering opportunities to cross sell Checkit's Work Management product to Next's customer base\nØ Diversifying that customer base and extend the offering across additional sectors alongside the food service sector (which was prev...