A Hull software company bought by Japanese giant NEC four years ago has been snapped up by an Australian communications specialist in a £17 million deal.
Eagle, as it is now known, focuses on control room solutions for emergency services and bustling transport hubs. It has been bought by Codan Communications, having been carved out from NEC’s 海角视频 operations.
Launched as APD Communications by two academics from the University of Hull more than 30 years ago, the mission critical systems provider had been absorbed into the tech firm following the January 2019 deal. It included elements of fellow NEC firm Northgate Public Services.
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Codan is a £225 million turnover Adelaide-headquartered business listed on the Australian Securities Exchange that has a significant global footprint in defence, humanitarian, peacekeeping and security markets. It recently bought Zetron Inc, a US-based control room software provider. Eagle will be integrated into that business in a move described by Codan’s chief financial officer Michael Barton as significantly strengthening its presence in the 海角视频, while providing a platform to further expand Zetron’s business across Europe and the Middle East. He told how several solutions are highly complementary, while assuring staff and customers of a “seamless integration”.
Zetron plans to maintain Eagle’s Hull base, with further investments mooted to grow its 海角视频 presence.
Scott French, Zetron president and executive general manager, said: “This acquisition is an opportunity to bring together two companies with extraordinarily similar values and market pedigrees, each with unwavering commitments to innovation,service and customer choice. “The acquired technologies immediately widen our core capabilities and also provide new international growth opportunities across public safety and transportation. We are excited to welcome the Eagle team to Zetron and look forward to the expansion and continued development of our operational footprint in the 海角视频.”
The Old Town team is a supplier to the Home Office’s Emergency Services Network transition project, a critical communications platform set to enable fast, safe and secure voice, video and data transfer across the 4G network by first responders. It already supplies more than 100 emergency services and transport customers across the 海角视频, Europe and Middle East, with more than two thirds of 海角视频 police forces and the likes of Dubai International Airport among its clients.
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Led by Mike Ishwerwood in the latter years of its time as an independent business, APD enjoyed phenomenal growth, with a six year spell seeing revenues propelled by 223 per cent. Turnover hit £9 million with 170 people employed before NEC pounced, rebranding in 2021.
Latest revenues of £16.6 million have been flagged as the deal was announced to investors, a further 86 per cent uplift over the past four years. A £2.3 million spend to integrate the businesses over the next year has also been highlighted - a similar figure to the latest annual earnings.
A transactional services agreement has also been instigated with NEC as the complex carve-out is completed. It will run for a minimum of six months, but could be expanded.
RSM 海角视频 advised on the sale of the business.
Steve Ainsworth, executive director for public safety at NEC, said: ‘We are grateful to RSM for their unwavering support throughout this entire process. Their global network and knowledge of the software market has allowed us to find a great home for our colleagues at Eagle. We couldn’t have achieved such a great result without them.”
Clodagh Tunney, corporate finance partner at RSM 海角视频, added: ‘We are delighted to have supported NEC on this transaction, which has brought together two closely aligned businesses, each with a strong reputation in the public safety and emergency response sector. It was a pleasure to work with NEC throughout the process and we are looking forward to seeing Eagle continue to fly under its new ownership.”
DACB Beachcroft provided legal advice to NEC, which has gone on to acquire SSS Public Safety Ltd, a Wiltshire-based software and services profiver to law enforcement organisations, specialising in forensic investigations, traffic enforcement and biometrics.