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- Inventis Technology (IVT) has signed an exclusive heads of agreement to fully acquire elevator controller manufacturer Electronic Circuit Designs (ECD).
- The acquisition is expected to be complete within 40 days, subject to due diligence, and is expected to cost around $5 million
- Inventis say the acquisition could mean electronic boards and circuit parts for the companies Hazavoid technology could be manufactured inhouse – potentially saving them millions of dollars
- Inventis shares are up 20 per cent to 12 cents.
Inventis Technology (IVT) has signed an exclusive heads of agreement to fully acquire elevator controller manufacturer Electronic Circuit Designs (ECD)
ECD began in 1996 as an electronic circuit board repair and supply business, which Inventis says has been “very profitable”.
The acquisition of a 100 per cent share in the company is expected to be complete in 40 days, subject to due diligence.
As part of the proposed acquisition, the property in Matraville, NSW, along with all of ECD’s assets will transfer over to Inventis. in addition, the vendor and staff will all be re-signed to remain with Group.
Managing Director, Anthony Mankarios says he’s “excited” to work with the new team which he says has a “similar culture” to their “technology division”.
“Andrew, the owner brings over 30 years of industry experience and knowledge to the Group and this provides a career path for many of the individuals joining the group,” he said.
Inventis plans to pay three times multiple of their FYR 2021 adjusted EBITDA earnings including various tranche payments over two years and a final earnout payment subject to performance targets.
The overall acquisition cost is expected to fall around $5 million and will be largely funded by debt facilities.
PWC has been engaged to secure debt funds to grow total revenue by $30 million.
Inventis say this acquisition could mean electronic boards and circuit parts for the companies Hazavoid technology could be manufactured inhouse – potentially saving millions of dollars.
Inventis Chair Tony Noun says the acquisition is an “excellent opportunity”.
“It is well organised and provides significant additional net earnings to the group,” he said. “This is but the next step in our overall strategy to enhance and restore Shareholder value.”
Inventis shares were up 20 per cent to 12 cents at 3:00 pm AEDT.
