Ultra Electronics bolts on earnings-enhancing acquisition

6th Jun 2013 07:14

Defence and security group Ultra Electronics has acquired specialist computing expert Varisys for up to 18m pounds cash.Paying £16m cash up front from its existing bank facilities for profitable Varisys, Ultra said it expected the acquisition to be earnings enhancing in the current financial year. Additional payments of up to £2.0m will be payable based on Varisys' performance during the next two years.Based in High Wycombe and 10 years old, privately held Varisys designs and manufactures bespoke products for high-performance embedded computing applications for key markets that include aerospace, military, telecommunications, vetronics and industrial control.Ultra said the acquisition would give it capabilities in a specialist, niche area, allowing other group businesses to meet customer requirements more quickly and cost-effectively. Varisys's two founders will stay with the business and it will continue to operate from its current location as part of Ultra's existing Controls business within the Aircraft & Vehicles Systems Division. Chief Executive Rakesh Sharma said: "Varisys has an excellent position in providing bespoke high performance processing solutions to meet the challenging needs of the aerospace, defence, telecommunications and industrial markets. "This acquisition fits Ultra's strategy of growth in specialist, niche electronic markets."OH