SEPURA, a company involved in the design, development and supply of digital radios, yesterday announced the acquisition of Vienna-based 3T Communications.
The deal will cost Sepura initial cash consideration of €8m (£6.4m) with further contingent consideration of up to €5m payable dependent on 3T achieving certain targets over an earn-out period. 3T designs and implements small to mid size radio systems predominantly for the commercial sector, including enterprise customers such as Shell, RWE, Bayer and BMW.
Based in Vienna, Austria, 3T generated revenues of €12m for the year ended 31 December 2011, with adjusted Ebitda of €1.3m and profit before tax of €0.4m. 3T’s current revenue is derived primarily from Europe, giving Sepura the opportunity to generate significant incremental revenue by offering 3T’s products through the company’s comprehensive worldwide routes to market.
Sepura is backed by a team of investors headed by Henderson and Michael Sherwood of Goldman Sachs.
House broker Investec believes the deal is a good one for Sepura, saying: “Overall this looks like a great deal for Sepura – it’s accretive, is on-strategy, provides new market access for both parties and will increase Sepura’s earnings quality.”