Codan Limited (CDA) has entered into an agreement to acquire all of the shares in Canadian-based company, Daniels Electronics Limited, a leading designer, manufacturer and supplier of land mobile radio communications solutions in North America. The acquisition comprises an upfront cash payment of CAD$25 million (approx. AUD$24 million) with the possibility of approximately CAD$2 million (AUD$1.9 million) in additional payments if certain earn-out targets are achieved over the next 18 months. The acquisition is scheduled for completion on 17 August 2012 subject to a number of conditions typical for transactions of this nature. Daniels is expected to contribute approximately CAD$2 million in EBITDA for the 10 months to 30 June 2013 after costs to expand sales into the emerging world and one-off integration expenses. The acquisition of Daniels will be funded by a mix of debt and equity.
Daniels offers a broad range of land mobile radio communications used by specialised market segments, such as public safety, which require high performance and high reliability private communications networks. Key clients include fire services organisations, police, ambulance and other emergency service providers, military, forestry organisations, highways and road contractors and mining and exploration companies. Daniels has an extensive distribution network and a strong public and private client base, predominantly located in Canada and the United States. The business offers a catalogue of differentiated products which focus on power- efficient infrastructure solutions, which are well suited to the needs of customers in the emerging world.
Codan’s Managing Director, Donald McGurk, said “The acquisition of Daniels delivers on Codan’s stated strategy of growing market share and diversifying its radio communications product offering. The Board believes that Codan’s extensive international distribution network will deliver significant growth opportunities to the Daniels business. Codan will seek to offer land mobile radio solutions across its global distribution network, especially in the emerging world”.