Quadnetics acquires German rival in £9m deal

WARWICKSHIRE security surveillance firm Quadnetics has acquired 100% of the issued share capital of German company Indanet AG.

Indanet is headquartered in Munich and provides integrated surveillance and security management systems to the transport industry.

The shares issue was for a maximum total consideration of £8.7m, with £1.74m in cash was paid on completion for an initial tranche of shares equivalent to 51%, Quadnetics announced today.

Further consideration of between £870,000 and £6.9m for the remaining 49% of Indanet will be payable in three tranches between 2013 and 2015, dependent on Indanet’s profits for the period from completion to May 31, 2015.

The cash element of the consideration will be funded from existing resources and from an extension of the Studley-based plc’s existing bank facilities.

Indanet’s major customers include Deutsche Bahn and the organisations responsible for public transport in Berlin, Munich and Frankfurt.

In the year to December 31, 2010, it had a turnover of £4.9m and net assets of around £870,000.

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A statement added: “Indanet’s technology and market positions are highly complementary to those of Quadnetics’ synectics mobile systems and network systems divisions.

“The acquisition is expected to accelerate significantly the company’s expansion into specialist transport surveillance markets in northern, central and eastern Europe in particular.”

Indanet’s management would remain with the business, it said.