Under terms of the deal, Towcester, UK-based Radstone will initially pay 10.7m pounds ($19.8m), plus an additional amount equal to the net cash balances of Octec at completion, expected to be roughly 2m pounds ($3.7m). On top of this, a further 3.5 pounds ($6.5m) is payable subject to Octec achieving certain operating profit targets for the year ending January 31, 2005.
Octec is based in Bracknell, UK, and supplies video tracking and image processing systems. This includes systems management processing, digital and analog interfacings, and signal distribution and electro-optical sensor specification.
Founded in 1989, Octec employs 50 people, and in its last financial year ending January 31, 2004, it reported profits before tax of 1.1m pounds ($2m) on sales of 6.3m pounds ($11.7m).
Radstone is looking to raise 6.2m pounds ($11.5m) from a placing in order to satisfy part of the initial payment. The rest will come from cash resources.
