Judges Scientific PLC - London-based scientific instrument sector investor - Acquires manufacturer of vapour deposition systems Korvus Technology Ltd for initial consideration of GBP2.6 million and deferred consideration of up to GBP400,000. Initial consideration financed from Judges Scientific's GBP35 million acquisition facility from Lloyds Bank Corporate Markets. Says level of deferred consideration dependent on Korvus' adjusted earnings before interest and taxes in the year to March 31, 2021.
For financial 2020, Korvus posted revenue of GBP1.4 million and pretax profit of 740,000. Net tangible assets totalled GBP680,000 including cash of GBP160,000.
Korvus founders Lars and Philippa Allers will continue in their current roles until March 2021.
"Korvus is an excellent company with innovative products, which will complement Judges' already strong capabilities in the coating sector. This cash generative acquisition, which is the third in the past eleven months, will enhance our earnings in accordance with our disciplined acquisition strategy and further demonstrates the resilience of our buy and build model," says Judges Scientific Chair Alex Hambro.
Current stock price: 5,315.00 pence
Year-to-date change: down 5.9%
By Ife Taiwo; ifetaiwo@alliancenews.com
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Judges Scientific (JDG)