Acquisition

RNS Number : 8033P

Digital Barriers plc

23 July 2010

 



23 July 2010

Digital Barriers plc

Acquisition of Overtis Solutions

The Board of Digital Barriers plc ("Digital Barriers" or the "Company"), the specialist provider of products and services to the homeland security market, today announces the acquisition of the business and assets of the Solutions division of Overtis Group Limited ("Overtis Solutions") for £3.20 million in cash (the "Acquisition").

Overtis Solutions is a UK-based specialist provider of integrated security solutions used in the protection of high value physical, human and information assets on a global basis held by high risk government departments, public sector bodies and major corporations.

Rationale for the Acquisition

At present, one of the most significant threats to UK security comes not from state-to-state conflict, but from international and domestic terrorism.  Potential target locations range from crowded public spaces to high-profile individual and geographic targets, as well as parts of the country's critical national infrastructure.  Each of these assets requires highly sophisticated means of protection if they are to be adequately safeguarded.

Overtis Solutions is considered by Digital Barriers to be highly complementary to the activities of Security Applications Limited ("SAL"), which Digital Barriers acquired on 25 March this year. SAL is a UK-based specialist supplier, installer and integrator of thermal imaging equipment for perimeter surveillance and the protection of high-profile target locations and has an adjacent but distinct customer base to Overtis Solutions.

The Board of Digital Barriers believes that the activities of Overtis Solutions combined with those of SAL will enable the Company to take a further step forward in its strategic ambition to build a specialist mid-market business that can work directly with end-customers and through key partner organisations both at home and abroad to provide focused, proportionate and effective solutions which help protect key assets from attack.

Terms of the Acquisition

The total consideration of £3.20 million is payable in cash on completion and will be satisfied from the Company's existing cash resources.

Financial information

Overtis Group Limited's latest audited accounts for the financial year ended 31 October 2009 reported Overtis Solutions' turnover of £2.64 million, with EBITDA of £0.07 million. At 31 October 2009, Overtis Solutions had net assets of £1.30 million.

Tom Black, Executive Chairman of Digital Barriers, commented:

"I am very pleased to be moving forward with the strategy we set out at the time of our flotation in March. The fit between our existing business and the Overtis Solutions business is extremely complementary and exciting.  I look forward to exploring the many opportunities now open to us to engage with customers and partners not just here in the UK but also on an international basis."

Andy Durham, Managing Director of Overtis Solutions, commented:

"As our discussions progressed, it became increasingly clear to me that both Digital Barriers and the team at Overtis Solutions share many common beliefs, aspirations and viewpoints on the security space and its potential for growth.  I look forward to working as part of the Digital Barriers team as we capitalise on that potential together, as a larger and broader solutions organisation."

For further details please contact:

Digital Barriers plc	[phone]
Tom Black, Executive Chairman
Colin Evans, Managing Director
Investec Investment Banking	[phone]
Andrew Pinder / Erik Anderson
Financial Dynamics	[phone]
Edward Bridges / Matt Dixon

About Digital Barriers:

Founded by the leadership team behind Detica Group, Digital Barriers is focused on the provision of specialist products and services to the homeland security market where the threat of international and domestic terrorism represents a compelling commercial opportunity.  Over time, the Company aims to become a mid-market specialist, working directly with end-customers and internationally through key partner organisations, to provide focused, proportionate and effective solutions for the protection of high-profile targets, crowded spaces and the critical national infrastructure.

www.digitalbarriers.com

This announcement includes statements that are, or may be deemed to be, "forward-looking statements".  These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will", or "should" or, in each case, their negative or other variations or comparable terminology.  These forward-looking statements include matters that are not historical facts.  They appear in a number of places throughout this announcement and include statements regarding the Company's current intentions, beliefs or expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies and the Company's markets.  By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances.  Actual results and developments could differ materially from those expressed or implied by the forward-looking statements.  Forward-looking statements may and often do differ materially from actual results.  Any forward-looking statements in this announcement are based on certain factors and assumptions, including the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's operations, results of operations, growth strategy and liquidity.  Whilst the Company considers these assumptions to be reasonable based upon information currently available, they may prove to be incorrect.  Save as required by law or by the AIM Rules for Companies, the Company undertakes no obligation to publicly release the results of any revisions to any forward-looking statements in this announcement that may occur due to any change in the Company's expectations or to reflect events or circumstances after the date of this announcement.

 

END

 

 

ACQUURARRUABUUR