Thu, 13 Jun 2024 | BUSINESS SALE
Affini Technology Limited, a critical communications services provider to the defence, construction and blue light sectors, has been acquired by security and surveillance systems developer Petards Group in a deal worth £2.8 million.
The purchase price reflects close to a 4.3x multiple of Affini Technology’s £652,000 EBITDA for the year to December 31 2023. During that period, the company reported revenue of £5.6 million, gross profit of £2.1 million and operating profit of £401,000.
Petards Group said that deal was subject to the release of bank security given by Affini by June 27 and that it would be funded by £1.7 million from its cash resources, as well as £800,000 from its overdraft facilities.
Affini Technology is based near Heathrow and employs 36 staff, including a number of highly-skilled communications engineers, and also has access to over 25 accredited sub-contract engineers. The firm provides voice, video and data communication services, as well as telematics, telemetry and asset/people tracking. It largely derives its revenue from project work, maintenance, consultancy and managed services.
Petards Group is headquartered in Guildford, with further sites in the North East of England. The acquisition of Affini Technology is in line with the group’s strategy to grow both acquisitively and organically.
Petards Group Chairman Raschid Abdullah commented: "This strategic acquisition will both significantly increase the group's scale and revenues, while complementing its present operations. As well as being complementary to the group's existing activities within defence, traffic and rail, it will broaden its reach into new sectors, including those of energy, aviation and buses."
Petards Group said in a statement: “The directors believe Affini is a highly complementary business and will be a good cultural fit with the existing group. It has an experienced executive leadership team, who are remaining with the business with strong engineering expertise, consistent business values and principles, an aligned commercial approach and comparable operational procedures. The directors believe that these factors will help reduce integration risk.”
Affini Technology Chief Executive Ian Carr added: "With Petards operating across many similar and complementary markets, I believe this represents a significant strategic milestone for the business and will enhance its ability to take advantage of the growth opportunities in its target markets."
The services sector could be key to a recovery in UK M&A activity
UK registered entity trading since 2010 providing international bank to bank payments. Regulated by FCA and HMRC. All intellectual property relating to customer website and back office/administration platform.
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