(Alliance News) - Investment company Barkby Group PLC on Tuesday said it will buy a 75% stake in the intellectual property of sleep technology products developer Cambridge Sound Technologies and associated parties for up to GBP6 million.
The investment company said the remaining shares will be held by the two Cambridge Sound founders, who will stay involved in the business.
The consideration for the intellectual property of Cambridge Sound Technologies comprises of an initial cash consideration of GBP750,000 and a deferred consideration payable in cash over five years of up to GBP5.3 million, conditional upon achievement of certain performance targets.
Barkby also intends to invest a total of GBP1.5 million of working capital into the acquiring vehicle. Barkby has an option to acquire the remaining 25% of the acquiring entity for GBP5 million in cash or shares prior to end of 2021.
The company expects the acquisition of Cambridge Sound Technologies to be earnings accretive in 2021.
Cambridge Sound Technologies is the creator of a patented product which uses audio technology to help the brain reset its natural sleeping cycle. It is expected to begin commercial production of the product in second quarter, with first commercial deliveries expected in third quarter.
Shares in Barkby were up 7.6% at 33.15 pence each in London on Tuesday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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