Spectra acquires new phosphour assets

29th Jan 2016 15:55

(ShareCast News) - Spectra Systems was talking up its new revenue opportunities on Friday, having acquired a sizeable new set of phosphour assets.The AIM-quoted provider of machine-readable banknote authorisation and brand protection technologies said the deal was worth a total of $3.15m (£1.51m), of which $2.805m would be paid in cash on closing and another £0.315m held in escrow for 12 months.Spectra did not make the identity of the vendor immediately clear."In addition to the assets, Spectra has acquired long-standing customer relationships related to the assets, including a major world supplier of banknote inks", the company's board said in a statement.Spectra said it would incorporate the assets within its existing phosphour business, and would not make any incremental hires to support the increased revenue.The company's board said that the blended product margin for the class of authentication materials, based on historical revenues, was expected to be in the order of 70%.Additionally, the deal was expected to open a new channel for Spectra's tax stamp and other authentication technology product ranges.The board said the assets generated revenues of approximately $1.6m and a gross profit of $1m in the year to 31 December 2015. Spectra's board said the assets had a book value of $0.64m at that date."The ability to integrate these assets and relationships with our existing phosphour business to achieve an expected long-lived $2.4m of revenue stream from these materials, without additional costs, will further bolster our stable government-based business income streams", Spectra CEO Nabil Lawandy said.At 1550, shares in Spectra Systems were up 22.39%, trading at 20.5p.