LONDON (Alliance News) - Technology company Laird PLC said Friday it has agreed to buy German integrated vehicle connectivity systems provider Novero GmbH for a total of EUR65 million from Donares Ltd.
It will issue 3.2 million shares, valued at around EUR15.5 million, representing around 1.2% of its issued share capital to the sellers. The remainder of the consideration will be paid in cash from Laird's existing bank facilities.
For 2015, Novero reported a pretax profit of EUR1.3 million on revenue of EUR83.7 million. Novero's revenue is expected to be lower in 2015 due to some contracts being delayed, which in turn will hit it profitability. However, Laird said it has identified a "clear action plan" to improve Novero's performance, and it expects the deal to add around GBP5 million to Laird's pretax profit in 2016.
"With over 250 million connected cars predicted to be on the road in the next five years; continuous and seamless connectivity for passengers, their vehicles and roadside infrastructure are becoming the expected standard. As the vehicle becomes the hub for communications and technology, this is a very exciting opportunity for Laird," said Chief Executive Officer David Lockwood in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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