Codan to acquire Domo Tactical Communications
Codan Limited has entered into an agreement to acquire 100% of the shares in US-based company Domo Tactical Communications (DTC), from a private equity company.
DTC is an established technology provider for high-bandwidth wireless communications with specialist capabilities in MIMO self-forming and self-healing mesh networks.
DTC is a long-term supplier into more than 20 key United States government agencies as well as the ‘Five Eyes’ intelligence communities.
DTC’s MIMO Mesh products provide wireless transmission of video and other data applications to predominantly first-world customers, including military and special forces, intelligence agencies, border control, first responders and broadcasters.
DTC is headquartered in the US, with locations in the UK and Denmark, and has around 140 employees.
The acquisition comprises an upfront payment of US$88 million (approximately AU$114 million), with the possibility of an additional payment of up to US$16 million if certain earn-out targets are achieved in calendar year 2021.
In the first full year of Codan’s ownership, DTC is expected to contribute approximately AU$90 million of sales, AU$14 million in EBITDA and AU$9 million profit before tax.
The acquisition will be fully funded from Codan’s existing cash reserves.
“The acquisition of DTC is consistent with Codan’s well-publicised strategic growth plan for our Tactical Communications business,” said Codan Chief Executive Donald McGurk.
“This is focused on providing total communications solutions by transitioning from a traditional voice-only platform via the addition of data and video communication capabilities.
“This acquisition fills a technology gap and will be able to leverage Codan’s global distribution channels into the developing world.”
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