- Codan (CDA) has officially acquired Domo Tactical Communications (DTC) from DTC Management Topco
- DTC is a technology and communication services provider which mainly operates in the government sector
- Codan acquired DTC for US$88 million (roughly A$113.7 million) which was fully funded from existing cash reserves
- Codan ended the day with shares down 0.3 per cent and closing at $16.79
Codan (CDA) has completed the acquisition of U.S.-based company Domo Tactical Communications (DTC) from DTC Management Topco.
DTC is a technology provider for high bandwidth wireless communications with specialist capabilities in MIMO Mesh networks. It provides wireless transmissions of video and other data applications to over 20 U.S. government agencies.
The company announced the deal in February this year, claiming it aligns with its growth and business expansion plans.
“This acquisition fills a technology gap and will be able to leverage Codan’s global distribution channels into the developing world. Importantly this transaction will be accretive for Codan shareholders from the outset,” Codan Managing Director and CEO Donald McGurk said.
The total consideration for the buy is an upfront cash payment of US$88 million (roughly A$113.7 million). However, there is a possibility for an additional US$16 million (roughly A$20.6 million) payment if certain earn-out targets are achieved this year.
The acquisition cost was fully funded from existing cash reserves.
In its first full year, DTC is expected to contribute around $90 million in sales, $14 million in earnings before interest, taxes, depreciation and amortisation and $9 million in profit before tax.
Codan ended the day with shares down 0.3 per cent and closing at $16.79.