Business
Acquisition of Tomtech
Acquisition of Tomtech.
About this update from Light Science Technologies Holdings Plc
[{"type":"text","content":"\n\n \nLight Science Technologies Holdings plc\n(\"LSTH\", the \"Company\" or the \"Group\")\n \nAcquisition of Tomtech\n \nEarnings enhancing and complementary addition, further strengthening the Group's product range and market reach\n \nLight Science Technologies Holdings plc (AIM: LST), the controlled environment agriculture (\"CEA\") technology and contract electronics manufacturing (\"CEM\") group, announces the Group earnings enhancing acquisition of Tomtech (UK) Limited (\"Tomtech\"), a UK leader in the design, manufacture and installation of monitoring and control systems for commercial greenhouses and polytunnels, for a total cash staged consideration of £500,000 (the \"Acquisition\").\n \nThe initial cash outlay, payable immediately, is £75,000, with the remaining payments being staged and deferred over the next 30 months. As at 31 December 2022, Tomtech's balance sheet included cash in excess of £140,000 and is currently c.£284,000.\n \nHighlights\n· Addition of new CEA revenue streams to the Group\n· Well-established business which has been operating for over 35 years (initially as a sole trader, before incorporating as a limited company in 2011)\n· Complementary product range with Artificial Intelligence (\"AI\") opportunities\n· Growing revenues with a proportion of recurring sales on maintenance contracts \n· Strong commercial and operational synergies with the Group's existing offering\n· Loyal CEA customer base across the UK and Ireland \n· Immediately Group earnings enhancing in the current reporting period\n \nRationale\nSince launching its first products into the CEA market over 35 years ago, Tomtech has established itself as a UK leader in the design, manufacture and installation of monitoring and control systems for commercial greenhouses and polytunnels, helping growers optimise and automate their cultivating environments, resulting in superior crop growth.\n \nTomtech's product range incorporates control systems and software, irrigation, lighting, sensors and venting. Its systems can be used across multiple crops in glasshouses and other horticultural environments. Additional long-term recurring reven...