(Alliance News) - Shares in IndigoVision Group PLC on Tuesday more than doubled as the firm agreed to a takeover by US telecommunications firm Motorola Solutions Inc.
Edinburgh-based video surveillance IndigoVision has agreed to a deal which will see Motorola pay 405 pence per share, valuing the company at GBP30.4 million. This is over double IndigoVision's closing share price of 177.0p on Monday in London.
Shares were trading at 370.00p each around midday on Tuesday.
The two have agreed that the 2p per share final dividend declared by IndigoVision at the time of 2019 results earlier in March will not be paid if the takeover goes ahead. IndigoVision had not paid a dividend in 2018.
IndigoVision showed a pretax profit of USD1.3 million in 2019 after a USD639,000 loss the year prior, with revenue up 9.2% to USD50.2 million.
The deal, Motorola said, will expand its offering in the video security market and is "highly complementary" to its existing operations.
IndigoVision Chief Executive Pedro Vasco Simoes said: "The access we will now have to Motorola Solutions' range of innovative technologies will create new opportunities for IndigoVision and enable us to bring an exciting proposition to the market that allows us to further deliver on our goal of delivering safety, security and business intelligence."
By George Collard; georgecollard@alliancenews.com
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