Business
Acquisition of Indanet AG
Acquisition of Indanet AG.
About this update from Synectics Plc
[{"type":"text","content":"\n \nRNS Number : 5152K Quadnetics Group PLC 18 July 2011 \n \n\n \n\n\n\n\nFor Immediate Release\n\n\n18 July 2011\n\n\n\n\n \n \n \n \n \nQuadnetics Group plc\n \nAcquisition of Indanet AG\n \n \n \nQuadnetics Group plc (\"Quadnetics\" or the \"Company\") (AIM: QDG) a leader in advanced surveillance technology and security networks, announces that it has agreed to acquire 100% of the issued share capital of Indanet AG (\"Indanet\"), a leading German provider of integrated surveillance and security management systems to the transport industry, for a maximum total consideration of €10 million. Consideration of €2 million in cash was paid on completion for an initial tranche of shares equivalent to 51% of Indanet's issued share capital. Further consideration of between €1 million and €8 million for the remaining 49% of Indanet will be payable in three tranches between 2013 and 2015, dependent on Indanet's profits for the period from completion to 31 May 2015. A maximum of €3.5 million of this further consideration may be paid, at Quadnetics' option, in new Quadnetics ordinary shares with the remainder in cash. The cash element of the consideration will be funded from existing resources and from an extension of Quadnetics' existing bank facilities.\n \nThe major customers of Indanet, which is based in Munich, include Deutsche Bahn and the organisations responsible for public transport in Berlin, Munich and Frankfurt. In the year to 31 December 2010 Indanet had turnover of €5.7 million, on which it reported profit before tax of €0.2 million and net assets of €1.0 million. In its three most recent financial years, Indanet's turnover has grown at a compound rate of 30% per year.\n \nIndanet's technology and market positions are highly complementary to those of Quadnetics' Synectics Mobile Systems and Network Systems divisions, and the acquisition is expected to accelerate significantly the Company's expansion into specialist transport surveillance markets in northern, central and eastern Europe in particular. It should also provide enhanced opportunities for the sales of Synectics high security surveillance systems into those regions.\n \nTogether with the management of Indanet, who have agreed to continue with the business, Quadnetics believes that Indanet has su...