LONDON Eurotech has acquired Applied Data Systems Inc. for an initial payment of $41.5 million and a possible earnout payment of up to $12.5 million.
The initial price is equal to a multiple of 8.6x earnings before interest, tax, depreciation and amortisation (EBITDA) for 2006 while the earnout payment is payable,based on 7 x EBITDA for the calendar year 2007 less the initial payment.
ADS (Columbia, MD) is a developer of application-ready ARM-based embedded computer systems, typically running Windows CE or Linux. Its products are used in a variety of industries such as medical monitoring, fleet management, point of sale, process control, digital signage and gaming.
In the year to Sept 30, 2006, ADS's unaudited turnover was $28 million and EBITDA was $4.8 million. It recently entered into an agreement for the acquisition of 65 percent of the share capital of Chengdu Vantron Technology Ltd, a R&D company based in China, with approx 30 engineers employed, that develops and manufactures embedded computer devices.
Eurotech (Amaro, Italy) recently failed in an attempt to buy Radstone Technology (Towcester, England) and in April 2006 acquired Arcom Control Systems Ltd (Cambridge, England) and Arcom Control Systems Inc. (Overland Park, Kansas) from Spectris plc. Following this acquisition, the Eurotech group had 259 employees and a combined pro forma 2005 turnover of approximately €53 million (around $70million).
“We continue to look for acquisition opportunities in the U.S., U.K. and continental Europe that support our strategic aim to build strength, size and scale in our chosen markets and to enhance shareholder value,” said Roberto Siagri, Eurotech chief executive.
Eurotech is listed on the Italian stock exchange and on August 1, 2006 completed a €109 million (around $145million) equity fundraising.