Metal detection and wireless communication business Codan (ASX:CDA)
has planned to purchase the UK-based company, Broadcast Wireless Systems (BWS) for an upfront payment of $3.7 million.
Codan's subsidiary Domo Tactical Communications (DTC) has acquired 100 per cent of shares in BWS and will fund the acquisition from Codan's existing debt facility. The deal also holds the possibility for an additional payment of up to $4.8 million if certain earn-out targets are achieved over 3 years.
BWS’ technology portfolio consists primarily of wireless video camera links and a newly developed range of video broadcast products.
Codan notes it strategy of entering into new geographies and leveraging its internet protocols into other adjacent markets. The acquisition broadens DTC technology offering and enables access to the growing remote broadcast industry more quickly than developing the technology internally, the company said.
The acquisition will be earnings per share accretive from day one.
Shares in Codan (ASX:CDA)
are trading 1.5 per cent lower at $9.59.