- Ava Risk Group (AVA) acquires MTD Holdings, the parent company of GJD Manufacturing for £4.5 million (A$7.82 million)
- Based in the UK, GJD is a security equipment designer and manufacturer, specialising in intruder detection systems
- 60 per cent of the acquisition price is being paid in cash and 40 per cent in AVA shares, with about 11.8 million new shares to be issued
- The company says the acquisition will allow it to access new customers and increase its global reach
- AVA shares are trading 5.66 per cent lower at 25 cents each at 2:11 pm AEST
Security risk management company, Ava Risk Group (AVA) has acquired MTD Holdings, the parent company of GJD Manufacturing for £4.5 million (A$7.82 million).
UK-based, GJD is a security equipment designer and manufacturer, specialising in intruder detection systems.
Consideration will be paid 60 per cent in cash and 40 per cent in AVA shares, with about 11.8 million new shares to be issued. The company will fund the cash component through existing cash reserves of which it had around $15.2 million as of June 30.
In FY21 ending in September, GJD achieved £4.6 million in revenue and £0.92 million in EBITDA, with a gross profit margin of 46 per cent.
CEO Rob Broomfield said the acquisition represents significant strategic value.
“The acquisition is an exciting opportunity to increase our global reach and access to new customers, particularly in the large markets of the UK and Europe.
“Our combined product portfolio is highly relevant to our respective end customers, and we can turbo charge their distribution by combining GJD’s go-to-market access with Ava’s current growth strategy,” he said.
Shares were trading 5.66 per cent lower at 25 cents each at 2:11 pm AEST.