Ricardo PLC Acquisition (8163M)

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RNS Number : 8163M

Ricardo PLC

02 August 2017

2 August 2016

RICARDO PLC

("Ricardo" or the "Group")

RICARDO EXPANDS US DEFENCE BUSINESS WITH ACQUISITION OF CONTROL POINT CORPORATION

Ricardo plc ("Ricardo"), a global engineering and strategic, technical and environmental consultancy business, today announces that it has signed a share purchase agreement to acquire the US based full-service engineering firm Control Point Corporation ("CPC"), comprising of the business, operating assets and employees engaged in the business of CPC which will then become part of Ricardo's US subsidiary, Ricardo Defense Systems LLC ("RDS").

The acquisition of CPC is central to the growth of Ricardo's defence business, significantly expanding the range of opportunities that can be pursued within the US defence sector. New capabilities available through this acquisition include expanded vehicle engineering capabilities, expertise in distributed software-based systems and fleet management technologies, in addition to expertise in energy and resource management. Founded in 1995, CPC has offices located in Michigan, California, Maryland and Alabama.

The acquisition, which is subject to regulatory approvals, including that of the Committee on Foreign Investment in the United States, is expected to be completed by 1 September 2017. The total cash consideration is $10.2 million, subject to any adjustment to reflect normalised levels of working capital, the achievement of certain financial performance targets and the retention of specific individuals.

Commenting on the acquisition, Dave Shemmans, CEO of Ricardo plc said;

"I'm delighted to be able to announce today's acquisition of Control Point Corporation. CPC has developed a reputation in the market for skilled engineering solutions over the past 20 years and their expertise is highly complementary to Ricardo's defence vehicle engineering programmes.

"This acquisition will allow the enlarged Ricardo Defense Systems business to compete across new segments of the market and will also serve our customers with an expanding portfolio of services and solutions. I look forward to welcoming CPC's employees to the global Ricardo team."

-ENDS-

 
 
   Further enquiries: 
 Ricardo plc                                    Tel: [phone] 
 Dave Shemmans, Chief Executive Officer         Website: www.ricardo.com 
  Ian Gibson, Chief Financial Officer 
 Newgate Communications                         Tel: [phone] 
  Adam Lloyd / Zoë Pocock / Ed Treadwell    [e-mail] 
 

NOTES TO EDITORS:

Ricardo plc is a global, world-class, multi-industry consultancy for engineering, technology, project innovation and strategy. Our people are committed to providing outstanding value through quality engineering solutions focused on high efficiency, low emission, class-leading product innovation and robust strategic implementation. With a century of delivering excellence and value through technology, our client list includes the world's major transportation original equipment manufacturers, supply chain organizations, energy companies, financial institutions and governments. Guided by our corporate values of respect, integrity, innovation and passion, we enable our customers to achieve sustainable growth and commercial success. Ricardo is listed in the FTSE4Good Index, which identifies global companies that demonstrate strong environmental, social and governance (ESG) practices. Ricardo, Inc. is the US subsidiary of Ricardo plc. For more information, visit www.ricardo.com.

Ricardo Defense Systems LLC is a Ricardo subsidiary structured under a Special Security Agreement, facilitating opportunities for collaboration with US manufacturers and government agencies on defence related vehicle technology development and engineering projects. Ricardo Defense Systems (RDS) is located within its own facility at Ricardo, Inc.'s Detroit Technology Campus in Van Buren Township, Michigan.

Control Point Corporation is a full-service engineering firm specializing in the design and integration of complex systems for government and commercial customers who require innovative technology and dependable performance. CPC develops highly reliable, integrated software-based systems for defence, aerospace, transportation, logistics, power, and energy. Offerings include engineering services and complete system designs that meet even the most exacting customer needs. As a result, CPC has earned a reputation for creating industry-leading solutions built on highly reliable, integrated systems tailored to the precise specifications of our customers. For more information, visit www.control-pt.com

This information is provided by RNS

The company news service from the London Stock Exchange

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August 02, 2017 02:00 ET (06:00 GMT)