Cybit buys Bluefinger for £1.62m in scrip, warrants
Cybit Holdings plc (CYH.L), the UK’s leading online telematics service provider, said today it had bought Bluefinger Limited, a vehicle and maritime telematics business, for £1.62m, including £0.5m of debt.
Richard Horsman (pictured), Cybit's CEO said: “This is a significant milestone for Cybit, reinforcing our position as the UK’s market leader in Internet-based telematics solutions for vehicle operators and extending our reach into the maritime arena where we see new and exciting opportunities.”
The deal will be funded by the allotment of just over 2 million shares and future warrants to the value of £593,850.
Bluefinger, based in Somerset, was formed following a management buy-out of the maritime telematics business of Thales Tracs, a world leader in maritime systems.
Since the buy-out, Bluefinger has developed a significant vehicle telematics division with around 200 customers covering a vehicle base of some 3,700. A number of synergies between this division and Cybit’s business have been identified, the company said. The acquisition of Bluefinger will cement Cybit’s position as the UK’s market leader in Internet based solutions of this kind.
Profits flat
In the year to 31 July 2005, Bluefinger reported turnover of £3.3m (2004: £3.3m), a profit before tax of £36,000 (2004: £121,000) and net assets of £769,000. The last result has been hit by a lack of new maritime and vehicle based contract awards as the management team turned its attention to a potential IPO of the business.
Bluefinger’s maritime telematics are used predominantly by government agencies to protect and manage sovereign assets including valuable fish stocks. Current customers include the UK, Tanzanian and Ghanaian governments and the Southern African Development Community.
It is estimated that Bluefinger has a 30% share of available contracts in its specific target sector. With an increased focus on coastal security around the world, the management believes that this is an expanding marketplace with high barriers to entry and commensurately attractive margin levels.
Bluefinger is also involved in the development of technology to track light aircraft.
There was no immediate impact on the Cambridge-based Cybit's share price, which remained at 49p, valuing the company at just under £10m.
14 June 2006
