AB Dynamics PLC Acquisition of rFpro (8723D)
28 Juni 2019 - 2:52PM
UK Regulatory
TIDMABDP
RNS Number : 8723D
AB Dynamics PLC
28 June 2019
For immediate release
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
THE EU MARKET ABUSE REGULATION (596/2014). UPON THE PUBLICATION OF
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INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
28(th) June 2019
AB Dynamics plc
("AB Dynamics", the "Company" or the "Group")
Acquisition of Kangaloosh Limited (the "Acquisition")
AB Dynamics (AIM: ABDP), the designer, manufacturer and supplier
of advanced testing systems and measurement products to the global
automotive market, is pleased to announce that it has completed the
acquisition of Kangaloosh Limited (trading as "rFpro").
rFpro is a leading developer and provider of engineering grade
simulation software and Digital Twins. Digital Twins are highly
accurate virtual representations of public roads, test tracks and
racing circuits. rFpro products are widely used in the development
of Advanced Driver Assistance Systems ("ADAS"), autonomous
vehicles, vehicle dynamics, as well as motorsport applications.
Rationale for the Acquisition
-- The Acquisition supports the Group's strategic priority of
delivering new products and enhancing the Group's capability to
support the current and anticipated future needs of ADAS and
autonomous vehicle verification, which will be achieved through a
combination of simulation, track testing and on-road
assessment.
-- As rFpro is a current supplier to the Group, providing a key
element of our advanced Vehicle Driving Simulator ("aVDS") product
line, the Board believes the Acquisition will provide security of
that supply chain and secure our competitive advantage.
Financial Considerations
The Acquisition has been completed on a debt free basis for an
initial cash consideration of GBP18.1 million (inclusive of GBP0.6
million surplus cash) with a conditional cash payment of up to
GBP3.5 million subject to certain performance criteria being
achieved for the year ending January 2021. The initial cash
consideration will be provided from the Company's existing
resources. The Sellers have provided warranties and indemnities
appropriate to a transaction of this nature.
About rFpro
rFpro was founded in 2007 and is headquartered in Romsey,
Hampshire, with a subsidiary (rFpro Inc) based in Ann Arbor, USA
and has 23 employees. rFpro has an established global customer base
including automotive OEMs, tier 1 suppliers and high-end
motorsport. Following the Acquisition, rFpro will continue to
operate from Romsey and Ann Arbor.
Prior to acquisition, rFpro was privately owned by Christopher
Hoyle, Elaine Grimwood and Image Space Investments LLC (the
"Sellers"). Mr Hoyle will remain with the business in a marketing
role and to support the transition period.
Based on unaudited accounts, in the year ended 31 January 2019
rFpro generated sales of approximately GBP4.2 million (2018: GBP3.6
million) and normalised operating profit of GBP1.3 million (2018:
GBP1.1 million) and they are currently trading in line with
management's expectations.
Dr James Routh, CEO, said:
"The Acquisition fits squarely in our stated strategy to develop
the Group through organic and acquisitive growth. Importantly, it
provides the Group with direct access to the potentially high
growth simulation-based verification market for ADAS and autonomous
vehicles, which complements our existing track testing business. It
also enables the Group to more rapidly develop and grow our
existing aVDS simulator product line.
We expect the Acquisition will be earnings enhancing in the
first year following acquisition and we are delighted to welcome
the rFpro team to the Group."
Enquires:
AB Dynamics plc 01225 860 200
Tony Best, Non-Executive Chairman
Dr James Routh, Chief Executive Officer
Mat Hubbard, Chief Technology Officer
Rob Hart, Chief Financial Officer
Cantor Fitzgerald Europe (Broker) 0207 894 7000
Phil Davies, David Foreman (Corporate Finance)
Caspar Shand Kydd, Keith Dowsing, Arthur
Gordon (Equity Sales)
Cairn Financial Advisers (Nomad) 0207 213 0880
Tony Rawlinson
Liam Murray
Richard Nash
Tulchan Communications 0207 353 4200
James Macey White
Matt Low
Deborah Roney
The person responsible for arranging the release of this
information is Dr James Routh, CEO of the Company.
Overview of AB Dynamics plc
AB Dynamics is a leading designer, manufacturer and provider of
advanced products for testing and verification of Advanced Driver
Assistance Systems ("ADAS") technology, autonomous vehicle
development and vehicle dynamics to the global automotive research
and development sector.
The Group is headquartered in Bradford-on-Avon, UK, employing
approximately 215 staff. AB Dynamics currently supplies all the top
automotive manufacturers, Tier 1 suppliers and service providers,
who routinely use the Group's products to test vehicle safety
systems and dynamics.
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END
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