Benefits of buying up X-ray firm transparent
£3.25 MILLION DEAL FOR SECURITY NEEDS SPECIALIST
A BUSINESS that makes X-ray machines for security specialists has agreed to buy a similar business in a deal worth £3.25 million.
Image Scan, of Barrow-upon-Soar, is buying Todd Research, a Cambridge-based developer of X-ray scanning security scanners, metal detectors and blast suppression equipment.
Its products and services are used by clients including embassies, banks and government buildings around the world.
Image Scan is buying the business from venture capital company Supply 999 Holdings.
Image Scan executive chairman and chief executive Bill Mawer said it would be a strong addition to the business.
He said: “Image Scan is excited by the opportunities which this acquisition brings.
“We already know Todd Research well, having successfully sold its cabinet X-ray systems over the past two years. For us, the acquisition is about quality of earnings and growth.
“With its recurring revenue, high profitability and synergistic product range, Todd Research will significantly enhance our business.
“Our immediate focus will be to develop new export channels through our extensive network of international partners.
“We are already primed to do this.”
Todd Research had a turnover of £2.1 million in the year to March 31 and pre-tax profits of almost
£500,000.
In addition to its own products, Todd Research supplies a wide range of third-party security systems – usually as part of a package tailored to the security needs of customers, and with ongoing maintenance contracts.
Manufacturing of Todd Research’s cabinet X-ray systems will be moved to the Image Scan’s Leicestershire site and a serviced office facility is being sought for staff in Cambridgeshire.