The Acquisition gives our European operations a significant
presence in Asian markets and will be immediately earnings enhancing.
OpSec Security Limited ("OpSec"), a division of OpSec Security
Group plc (London AIM: OSG) today announced the signing of a
definitive agreement to acquire Light Impressions International
Limited, a Surrey, UK based provider of authentication devices. The
purchase price consists of an upfront cash payment of GBP 2.0 million
and a two year cash earn-out capped at GBP 4.5 million, in addition to
which OpSec will pay in cash on a pound for pound basis for the amount
by which Light Impressions´ cash balances at completion exceed its
immediate requirements. The two-year earn-out is to be calculated by
reference to the turnover and gross margin achieved on key customer
accounts during that period. The purchase price will be paid out of
existing cash balances and bank facilities.
Key employees from Light Impressions have agreed to stay with the
business post the acquisition to help ensure a smooth transition and
the early realisation of significant integration benefits.
OpSec is a pre-eminent provider of anti-counterfeiting
technologies and services to over 100 governments and corporations
worldwide. OpSec´s products and services allow its corporate clients
to authenticate and to track products from counterfeiting and
diversion in both the physical and virtual worlds. Governments use
OpSec technologies to guard against counterfeiting of currency, tax
stamps, passports, drivers´ licenses, licenses, and other government
documents.
Light Impressions is a provider of holographic products to
approximately 80 customers globally with a particularly strong
presence in Asia. It creates its own holographic images and sources
products from other holographic manufacturers but does not manufacture
in its own right. Light Impressions currently has 7 employees based in
Leatherhead. In its annual report for the year ending 30th August 2007
Light Impressions reported turnover of GBP 5.0 million, profit before
taxation of GBP 0.6 million and net assets of GBP 1.5 million.
Commenting on the acquisition Mark Turnage, Chief Executive
Officer, said: "The team at Light Impressions has done an excellent
job of building strong customer relationships and the acquisition of
this company will give our European operations a significant presence
in the Asian market. We expect the transaction to be earnings
enhancing immediately and of significant benefit to the Group in
future years."
