British aerospace firm snaps up UAE consultancy
Ultra Electronics buys Dascam Consulting for $19mn, will add to earnings in 2009.
British defence and aerospace company Ultra Electronics Holdings said on Monday it acquired Dascam Consulting, a UAE-based consultancy, for $19 million.
Ultra, a developer of electronic systems for the defence and aerospace markets, expects the purchase to be earnings-neutral in 2008, and add to its earnings in 2009.
Ultra will also make some delayed payments on meeting certain performance targets over the next three years, the company said in a statement.
The acquisition, Ultra's first in the Middle East, will be financed using its existing banking facilities, it said.
On a pro-forma basis, Dascam's revenue on a full-year basis for 2008 would have been about $24 million, generating an EBIT margin of about 15 percent, Ultra said.
Dascam provides customised consultancy and training services for the defence, security and government infrastructure markets in the region.
Ultra shares closed at 1146 pence on Friday. (Reuters)