SYDNEY, AUSTRALIA: Codan Limited’s (ASX:CDA) subsidiary Domo Tactical Communications (DTC) has acquired 100% of the shares in UK-based company, Broadcast Wireless Systems Limited (BWS) from BWS’ founders.
The transaction is funded by Codan’s existing debt facility, which consists of an upfront payment of $3.7 million, with the possibility of an additional payment of up to $4.8 million if certain earn-out targets are achieved over 3 years.
Broadcast Wireless Systems technology portfolio consists primarily of wireless video camera links and a newly developed range of high-quality video broadcast products.
According to Paul Sangster, (President, Tactical Communications), “The quest for improved production quality, cost efficiencies and the challenges caused by the pandemic are fuelling the transition of broadcasters to adopt remote production capabilities and the combined offering of DTC and BWS will enable this.
DTC’s customers will now be offered a low-latency, high performance solution which has been validated in critical and challenging operations such as the opening ceremony for the Olympic Games in Japan and some of the world’s most prestigious and demanding motor racing events.”
Codan Limited has a strategy of investing and strengthening our core businesses by developing new products, entering into new geographies and leveraging our IP into other adjacent markets.
This acquisition is strategically important, as it broadens DTC’s technology offering and enables access to the growing remote broadcast industry more quickly than developing this technology internally.
The acquisition will be earnings-per-share accretive from day 1 given that BWS delivered an EBIT of approximately $0.6 million in the financial year ended 30 June 2021, a year in which financial performance was adversely impacted by the pandemic.
As a result of the transaction, Codan will acquire total assets approximately equal to the purchase price with no change to Codan’s shareholder equity. www.codan.com.au
