Testing technology firm acquired at 3.5x revenue
Wed, 01 May 2024 | BUSINESS SALE
MK Test Systems Limited, a Somerset company that designs and manufactures safety-critical electrical testing technology, has been acquired in a deal worth £44 million. The Wellington-headquartered company has been acquired by life-saving technology group Halma.
The consideration for the business will be paid on a cash- and debt-free basis, funded from Halma’s existing facilities. The consideration represents a multiple of more than 3.5x MK Test Systems’ £12.4 million revenue for the year to March 2024.
MK Test Systems, which was founded in 1990, manufactures products that are used around the world to test the integrity of high voltage electrical systems. The company's products are used in industries including rail, aerospace and commercial electric vehicles (EV).
Following the acquisition, the firm will operate as a standalone business within Halma’s global group of companies and will continue to be led by its current management team.
MK Test Systems Managing Director Jason Evans said: "Passenger and operator safety is a top priority for our customers. They must ensure that platforms and machines with increasingly complex electrical systems are manufactured and assembled correctly, are operating within specification, and are being properly maintained.”
“Joining Halma means we can grow our business in key markets while helping more businesses meet increasing safety regulations and demands for test traceability. MK Test Systems is aligned with Halma's purpose of growing a safer, cleaner, healthier future for everyone, every day."
Halma Group Chief Executive Marc Ronchetti commented: "MK Test further enhances our capabilities in electrical safety and brings new opportunities for growth, driven by increasing safety regulation and the need to protect high value assets.”
“Its technology plays an important role in automated electrical testing and in ensuring the integrity of electrical systems. We are delighted to welcome MK Test and to support its development as it continues to scale its business globally."
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