Last checked at 29 Jan 2016 07:00
Spectra Systems Corporation
("Spectra")
US$3 Million Acquisition of Key Specialty Phosphour Assets
Spectra Systems Corporation, a leader in machine-readable high speed banknote authentication and brand protection technologies, today announces that on 28 January 2016 it completed the acquisition of certain specialty phosphour assets primarily used in the authentication of world banknotes. The total consideration amounted to $3.15 million, of which $2.805 million was paid in cash on closing with $0.315 million held in escrow for 12 months.
In addition to the assets, most importantly Spectra has acquired long-standing customer relationships related to the assets including a major world supplier of banknote inks. Spectra will incorporate the company's assets within its existing phosphour business and is not making any incremental hires to support the increased revenue. Together with the existing long standing phosphour business, the blended product margin for this class of authentication materials, based on historical revenues, is expected to be of the order of 70%.
In addition, the longstanding relationship with the major banknote ink supplier is expected to open a new channel for Spectra's tax stamp and other authentication technologies.
The assets generated revenues of approximately $1.6 million and a gross profit of approximately $1.0 million in the year ended 31 December 2015. At that date the assets had a book value of approximately $0.64 million.
Commenting, Nabil Lawandy, CEO of Spectra Systems Corporation, said:
"We are pleased to have completed the acquisition of these key assets which will expand our high margin phosphour business and the palette of world banknotes which depend on inks made with our materials. The ability to integrate these assets and relationships with our existing phosphour business to achieve an expected long lived $2.4 million of revenue stream from these materials without additional costs will further bolster our stable government-based business income streams.
Enquiries:
Spectra Systems Corporation
Dr. Nabil Lawandy, Chief Executive Officer Tel: +1 (0) 401 274 4700
WH Ireland Limited
Chris Fielding (Head of Corporate Finance) Tel: +44 (0) 20 7220 1650