Acquisition of Portalify OY enhances Sepura’s solutions offering
Sepura, a leading global provider of critical communications systems, today announces the acquisition of applications developerPortalify OY (“Portalify”), for an initial cash consideration of EUR1 million.
Portalify provides end-to-end solutions for mobile working via a suite of software applications which increase the safety, productivity and efficiency of professional mobile radio users, across multiple communications standards. Its existing portfolio includes task management, asset location, image messaging and database query applications. Portalify’s current revenues are derived primarily from a small number of public safety customers in Western Europe, giving Sepura the opportunity to generate additional revenues by promoting Portalify’s applications through our existing comprehensive worldwide routes to market.
Portalify’s contracts typically generate revenues over a multi-year cycle with maintenance revenues, project expansions and other change requests being incremental to the original contract value, further enhancing the Group’s base of recurring revenues.
Contingent consideration of up to EUR6 million will be payable in cash if Portalify achieves revenue and operating profit targets over the three years to 30 June 2016, with any net debt outstanding at completion, expected to be approximately EUR1 million, being deducted from any future consideration payable.
Based in Helsinki, Finland, Portalify generated revenues of EUR1 million for the year ended 31 December 2012, with a reported operating loss of EUR0.4 million. The acquisition is anticipated to be earnings accretive for Sepura from FY15.
Gordon Watling, CEO of Sepura, commented: “This acquisition is an important strategic step as we continue to develop our complete critical communications solution, and follows the successful acquisition and development of Sepura Systems last year.
“We are seeing increasing demand from our customers for software tools and applications as they seek to enhance user safety and drive operational efficiency from their investment in digital communications. While we already have many of the skills required to build a successful portfolio of applications, acquiring Portalify gives us immediate access to an enlarged suite of applications that our customers need, giving us a fully integrated solution much faster and more cost effectively than creating it internally. Portalify’s software expertise complements our existing product portfolio, enabling us to broaden the capability we offer, whilst securing a longer term relationship with our customers.”
Oakley Capital Corporate Finance were financial advisors to Sepura on this transaction.
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For further information please contact:
Gordon Watling, Chief Executive Officer
Steve Chamberlain, Chief Financial
Peter Connor, Investor Relations +44 12 2387 6000
Charlie Goodwin +44 20 7861 3232
This announcement contains certain forward-looking statements with respect to the operations, performance and financial condition of Sepura. By their nature, future events and circumstances can cause results and developments to differ from those anticipated. Nothing in this announcement should be construed as a profit forecast. No undertaking is given to update the forward-looking statements whether as a result of new information, future events or otherwise.
Notes to Editors:
Sepura is a global leader in the design, manufacture and supply of TETRA digital radios, infrastructure and applications. We provide specialist solutions for the public safety, transportation, oil and gas, mining, utilities, industrial and other commercial sectors.
The Group offers one of the broadest ranges of TETRA products available and is often first to deliver innovative products and features to its markets. The recent acquisition of specialist TETRA infrastructure systems supplier, 3T – now rebranded Sepura Systems – enhances Sepura’s capability through the addition of powerful and easy-to-deploy systems.
Founded in the UK in 2002, Sepura has expanded rapidly across the world and is now a market leader in over 30 countries, with a network of regional partners that sell, and provide local support for, its market-leading products.
Based in Cambridge, England and with over 300 employees, Sepura was admitted to the Official List of the London Stock Exchange on 3 August 2007.
This information is provided by RNS
The company news service from the London Stock Exchange