(Sharecast News) - Security technology firm Spectra Systems said on Monday that it has entered into a conditional agreement to acquire security printing business Cartor for as much as £10.5m.
Once completed and Cartor has been integrated into the group, Spectra expects the acquisition to consolidate the supply of its Fusion polymer substrate within the enlarged group, increase margins on polymer substrates, and open new sales opportunities, while also increasing combined earnings, product development capabilities, and visibility.
The AIM-listed group will pay £5.5m for the group on completion, with up to £3.0m to be satisfied through the issue of new shares, while a potential further sum of £2.0m may become payable no later than 18 months after completion, through the issue of further shares, in the event that Spectra has qualified its Fusion polymer substrate for tender submissions with a central bank customer.
Chief executive Dr Nabil Lawandy said: "The Spectra board of directors and I are delighted to announce the acquisition of Cartor to solidify our position in the polymer substrate market and expand our business through new sales channels. Our experience in working with the Cartor team for two years has been exceptional and I have great confidence in the leadership of the group,"
"Given Spectra's strong cash position as well as cash generation, the board is confident that we will continue to issue our dividends and meet our customers' financial obligations following completion."
As of 1410 GMT, Spectra shares were up 12.94% at 199.90p.
Reporting by Iain Gilbert at Sharecast.com
Spectra (unres) (SPSY)