Electronics Production |
Ultra acquires Dascam Consulting in UAE for $19m
Ultra announces the acquisition of Blue Sky Group (International), of which the principal trading entity is Dascam Consulting (‘Dascam’). Ultra will pay an initial cash consideration, subject to net asset adjustment on completion, of $19m, together with a further payment which is subject to certain growth targets being met over the next three years.
On a pro-forma basis, Dascam’s revenue on a full-year basis for 2008 would have been about $24m, generating an EBIT margin of about 15%. Dascam is a defence consultancy in the Middle East, providing specialist resources which deliver customised consultancy and training services for the defence, security and Government infrastructure markets in the region. These services are often the subject of multi-year contracts. It also operates as a gateway for the provision of turnkey solutions for its broad range of customers in UAE, Saudi Arabia, Qatar and Bahrain.
Dascam has already been successful in winning new business for Ultra and is currently working on a number of joint bids in the region. Examples of contract awards to date are:
- with the UAE Armed Forces the supply of crisis response planning systems
- in Qatar, for the provision of a turn-key training solution for emergency planners, incident commanders and security controllers
- for the Abu Dhabi Police, providing training for incident management
The company, established in 2001, employs 140 people in Abu Dhabi, including a high proportion of locally recruited and trained consultants. It will operate as a stand alone business within Ultra’s Aircraft & Vehicle Systems division, reporting to Alan Jan-Janin. This acquisition will be financed using Ultra’s existing banking facilities and is expected to be earnings-neutral in 2008 and earnings-enhancing in 2009.
Douglas Caster, Chief Executive of Ultra, commented: “I am pleased to bring Dascam into the Group as Ultra’s first acquisition in the region. It supports the Group’s growth strategy by positioning Ultra in the Middle East. Dascam has a track record of winning business in the region and will provide Ultra with the ability to market on a wider scale its broad range of offerings and capabilities in this important and expanding marketplace.”
