Tech group Codan is buying a slice of Japanese electronics giant NEC Corporation's UK business for $22m.
Eagle NewCo is NEC Software Solutions UK's command and control solutions business.
The deal is funded by Codan’s existing debt facility and another $3m is due to be spent by Codan for set up and in integration costs over the next 12 months. Codan has entered into a transitional services agreement with NEC while it integrates Eagle into its Zetron systems and support services for a minimum period of 6 months with options to extend, if needed.
With completion in 12 months, Eagle is expected to contribute marginally to Codan's FY24 profitability and be earnings per share accretive in its second year under Codan. Eagle's full year earnings totalled $3m to the end of March with revenues of $21m.
"This acquisition is consistent with Codan’s inorganic growth strategy to acquire technology and capability through complementary acquisitions that accelerate growth, with this acquisition focussed on its core public safety market segment", Codan told investors on Wednesday. Shares last at $7.51.
No cap raise.
