PENNANT INTERNATIONAL GROUP PLC (Alliance News) - Pennant International Group PLC announced on Thursday the acquisition of Track Access Productions Ltd.
The Cheltenham, England-based training technology and product support provider said it purchased the entire issued share capital of TAP for an initial consideration of GBP798,500.
TAP is based in Bedfordshire, England and provides train driver training, route mapping and route familiarisation services to the UK rail industry.
The acquisition "significantly enhances [its] existing Rail offering, adds recurring revenues and further diversifies group business lines", Pennant said.
A completion payment worth GBP638,610 has been settled, alongside a balancing payment of GBP160,000 in the next two months, as well as a deferred payment of GBP175,500.
Pennant said the deal is for an enterprise value of GBP585,000 plus an amount of around GBP389,000 in respect of TAP's "free cash" following a debt repayment.
The acquisition is expected to generate revenue of around GBP850,000 in 2023, Pennant said, and aligns with its strategy to enhance recurring revenues and diversify civilian markets.
Pennant said the acquisition is being funded by its existing cash resources.
Chief Executive Officer Phil Walker said: "TAP is an excellent business with a long-standing, trusted reputation in the UK rail market, and we look forward to working together to integrate TAP into Pennant's growing rail offering."
Shares were up 2.7% at 38.00 pence in London on Thursday morning.
By Sabrina Penty; Alliance News reporter
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