AIM-listed developer of advanced聽security and surveillance systems Petards is to聽acquire specialist聽transportation software engineering company RTS Solutions for 拢1.5m.
Petards directors believe that the acquisition will boost the Group鈥檚 software offering as it eyes entry into the UK rail infrastructure market.
The company has an existing on-board train system called聽eyeTrain聽which consists of a series of solutions offering a surveillance subsystem designed to help maximise safety and performance.
Petards will complete the transaction, which consists of an initial cash payment of 拢1m and deferred consideration of 拢500,000, if RTS meets certain targets, including financial, between March 2018 and 2019.
Unaudited accounts from Leeds-based RTS show that it generated revenues of 拢800,000 for the year ended 31 March 2018.
RTS, whose main customers are currently Network Rail and its Tier 1 contractors, will continue to operate as an independent company within the Petards Group.
It will stay at its offices at Holbeck Rail Depot in Leeds and staff will continue with the business.
鈥淲e are delighted to welcome RTS and its staff to the Petards Group and look forward to working with them to further develop and grow its business,鈥� said Petards chairman Raschid Abdullah.
鈥淭his acquisition marks a further step in the broadening of the Group鈥檚 portfolio of products, providing the opportunity to expand its earnings and enhance shareholder value.鈥�