OMG Sensing defence growth

22nd Feb 2011 12:11

Imaging software provider OMG is paying up to $8.5m (£5.3m) for Sensing Systems Inc. AIM-quoted OMG believes a combination of the technologies of 2d3 and Sensing, which began trading in 2000, will provide a much stronger business in the aerial imaging market. OMG targeted the defence sector in 2006 and it has won contracts in the UK and US. The focus is unmanned aircraft. Sensing provides software and services for digital media management. The customer base includes most of the main defence contractors in the US but there are also commercial customers. Sensing can provide video import and export tools and standards compliant software libraries that fit well with the image enhancement activities of 2d3. The initial consideration is $3.5m (£2.2m), which includes $1m (£620,000) in shares. The other $5m (£3.1m), which will be satisfied by shares, is dependent on achieving three cumulative revenue goals over a four year period. Achieving those goals will make the acquisition earnings enhancing. Sensing made a pre-tax profit of $300,000 (£200,000) on revenues of $1.5m (£1m) in 2010. The UK and US 2d3 businesses generated revenues of £1.24m in the year to September 2010, although much of that comes from the boujou camera tracker software used by the media. The division reported a loss.