Ultra Electronics sells Airport Systems unit for £22m
By Frank Prenesti
Date: Friday 02 Nov 2018
(Sharecast News) - Defence and security company Ultra Electronics said it had agreed to sell its Airport Systems business to ADB SAFEGATE for £22m.
Ultra said £2m of the money would be deferred and transferred following the exchange of commercial contracts. The total proceeds will be retained and used for general corporate purposes. The deal is expected to complete by January 31, 2019.
Airport Systems provides specialised IT software to improve the operational performance of airports and airlines. These solutions are installed in approximately 150 airports and are in-service with 100 airlines internationally, Ultra said.
For the year to end-December 2017, the Airport Systems business recorded revenues of £18.9m and operating profit of £3.2m. The disposal will be marginally dilutive to the group's earnings for the year to December 31 2019.
Gross assets were £7.2m as at 31 December 2017. Depending on when the transaction completes, it will result in either a goodwill write down or accounting loss on disposal of approximately £8m.
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