Ultra announces that it has agreed to sell its Airport Systems business to ADB SAFEGATE for a total consideration of £22m, of which £2m is deferred. The deferred payment will be made following the transfer of certain commercial contracts. The transaction proceeds will be retained and used for general corporate purposes.
Assuming satisfaction of all closing conditions, the transaction is expected to complete by 31 January 2019.
Airport Systems provides specialised IT software solutions to improve the operational performance of airports and airlines. These solutions are installed in approximately 150 airports and are inservice with 100 airlines internationally.
For the year ended 31 December 2017, the Airport Systems business recorded revenues of £18.9m and operating profit of £3.2m after allocation of central overheads. The disposal will be marginally dilutive to the Group’s earnings for the year ending 31 December 2019. The gross assets of the Airport Systems business 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. Further details will be provided in the Group’s 2018 Annual Report & Accounts.
Simon Pryce, Chief Executive Officer of Ultra, commented:
“Although Airport Systems has been a part of Ultra for some time, it has little customer, process or technology commonality with the rest of the Group. As part of our focus on long term sustainable value creation and after conducting an appropriate process, we have therefore concluded that a sale of Airport Systems to ADB SAFEGATE is the best long term solution for Airport Systems customers, employees and other stakeholders and represents good value for Ultra.”
Ultra Electronics Holdings PLC
020 8813 4307
Simon Pryce, Chief Executive Officer
Amitabh Sharma, Group Finance Director
Susan McErlain, Corporate Affairs Director 07836 522 722
James White, MHP Communications 020 3128 8756