Listed Swedish tech firm swoops for traffic control specialist
A listed Swedish technology company has acquired Kidderminster-based traffic control specialist RedSpeed International in a deal worth up to £12.1m.
Stockholm-based Sdiptech AB has snapped up RedSpeed, a supplier to the traffic enforcement industry, specialising in the development, manufacture and maintenance of digital enforcement cameras.
The company has a primary focus on the UK market but is also seeing increasing interest for its products from customers in the EU and the rest of the world. RedSpeed currently has net sales of around £5.6m and an operating income of approximately £1.6m.
Sdiptech AB said that on the day of transaction, the company is valued at £10.6m, part of which is paid at closing.
The final purchase consideration will be between £9.1 and £12.1m, depending on earnings development during the earn-out period.
Robert Ryan, managing director of RedSpeed International, said: “I am very pleased to welcome Sdiptech as the new owners of RedSpeed International. With the help of Sdiptech we can continue to deliver our specialist technology to our customers in the UK as well as abroad and become a company that will rival the best in the world in the market of traffic control and enforcement.”
Sdiptech AB is a Swedish technology group with a primary focus on infrastructure in markets such as water and sanitation, power & energy, transportation, energy efficiency and air climate.
The company employs more than 1100 people around the world and is listed on the Swedish stock exchange.
Jakob Holm, CEO Sdiptech, said: “RedSpeed International has a strong position in the niche market of traffic control and safety. It has gained its position through customer-focused, high-quality and innovative products. The market for traffic safety and transportation is showing a solid growth, driven by society’s pursuit of more efficient and safe communities. As a company focusing on infrastructure, we want to have a clear position in this development.”
Springboard Corporate Finance partner Justin Sparks and director James Bailey advised the shareholders of RedSpeed on the sale.
Sparks said: RedSpeed is a great local success story. We are delighted to have supported the shareholders in delivering an excellent outcome and to find the management team an international strategic partner to build on RedSpeed’s historic success.”
Legal advice to the vendor was provided by Eversheds Sutherland, led by partner James Trevis and associate James Finney.
Mark Taylor, Maria Thomas and Andy McGinn from Grant Thornton advised Sdiptech AB, with legal advice provided by Paul Cliff and Rachel Cox of Gateley.
