ULTRA Electronics, the FTSE 250 defence, security and transport firm, yesterday agreed to acquire Forensic Technology WAI, a provider in automated firearm ballistics identification and forensic analysis systems.
The deal is worth around C$94m (£50.7m), with the addition of C$6m depending on Forensic’s earnings over the next two years.
The management team, which includes the company’s founder Robert Walsh, will stay in place after the acquisition.
Ultra Electronics says it plans to accelerate the development of Forensic Technology’s security and analysis products over the next year with an estimated development cost of around £1m.
The transaction, which is subject to the US regulatory approvals, is expected to close towards the end of the second quarter 2014.
“I am pleased with the acquisition of Forensic Technology. It has established a strong position in the international market place and its technologies and capabilities complement Ultra’s broader law enforcement, security and data analytic offerings,” said Ultra Electronics’ chief executive Rakesh Sharma.
“This provides an important step in building our portfolio in the security sector.”
Ultra Electronics’ share price closed slightly up at 1,734p yesterday, having fallen from 1,940p since the start of the year.