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Digital Barriers set to buy US surveillance firm

Published: 20:31 11 Dec 2015 AEDT

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Brimtek develops its own proprietary, customisable surveillance products and the firm reckons it's an attractive target

Digital Barriers (LON:DGB), the surveillance and video services provider, saw shares drop over 18% as it announced a discounted cash call, interim results and a  deal to buy US surveillance firm Brimtek for up to £29.6mln.

To fund the deal, the firm plans to raise £25.8 mln after expenses via a fully underwritten placing of around 80.5mln shares at 35p each -  a considerable discount the current price of 41.5p.

Brimtek develops its own proprietary, customisable surveillance products and the firm reckons it's an attractive target given the breadth of its offerings to the US defence, national security and law enforcement communities.

Brimtek expected revenue of around $40 million and EBITDA of around $3.5 million for the year to December 31, 2015.

Fort the acquisition, £16.4 million is payable on completion with another £13.2 million to be paid based on Brimtek hitting targets through to the end of 2017.

News of the deal comes as Digital announced a pre-tax loss for the half to September 30 of£5.8 million, considerably narrower than £13.2 million a year earlier, despite revenue falling to £7.9mln against £10.1 million in 2014, mainly due to lower administrative costs.

Digital Barriers shares fell 18.63% to 41.5p

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