SDI Group plc acquired Safelab Systems Ltd for £7.7 million.
March 27, 2022
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SDI Group plc (AIM:SDI) agreed to acquire Safelab Systems Ltd for £7.7 million on March 24, 2022.Total consideration is forecast to be approximately £7.7 million, net of cash acquired. Initial consideration of £5.5 million, of which £5.3 million paid in cash and £0.2 million in ordinary shares of 1 penny each in the capital of the Company at a price of 169.9 pence per Ordinary Share. The shares issued are subject to a one-year lock-in agreement and payment in cash shortly after completion, equivalent to the net tangible assets of Safelab at completion, currently estimated at £2.9 million and which net tangible assets are estimated to include £0.7 million of cash and no bank debt. The net assets include freehold ownership of Safelab's manufacturing facility, valued at approximately £1.2 million. The cash consideration will be funded from existing cash resources and from the Group's revolving credit facility with HSBC UK Bank. finnCap Ltd acted as financial advisor to SDI Group plc.
SDI Group plc (AIM:SDI) completed the acquisition of Safelab Systems Ltd for £8.5 million on March 24, 2022. The consideration includes £0.2 million in SDI Group shares, £5.9 million in cash paid before the year end and £2.4 million in cash paid after the year end. On the date of the acquisition, Safelab had £0.8 million of cash in hand. As of Febraury 28, 2022, Safelab Systems has Net assets of £4,946 million.
SDI Group plc is a United Kingdom-based company that designs and manufactures scientific products for use in applications, including life sciences, healthcare, astronomy, consumer manufacturing and art conservation markets. The Company operates through two segments: Digital Imaging and Sensors & Control. The Digital Imaging segment includes Synoptics brands Syngene, Synbiosis, and Fistreem International, the Atik Cameras brands, Atik, Quantum Scientific Imaging, and Opus Instruments, and Graicules Optics. These businesses offer customer applications, technology, and production location. The Sensors & Control segment combines its Sentek, Astles Control Systems, Applied Thermal Control, Thermal Exchange, MPB Industries, Chell Instruments, Monmouth Scientific, Uniform Engineering, Scientific Vacuum Systems, Peak Sensors, LTE Scientific and Safelab Systems businesses. These businesses provide products that enable accurate control of scientific and industrial equipment.