Initial cash consideration of €1 million was paid on completion and contingent consideration of up to €6 million will be payable in cash if Portalify achieves revenue and operating profit targets over the three years to 30 June 2016.
Sepura, which is listed on the main market of the London Stock Exchange, is a global leader in the design, manufacture and supply of TETRA digital radios, infrastructure and applications. Sepura's solutions are used in the public safety, transportation, oil and gas, mining, utilities, industrial and other commercial sectors.
The acquisition of Portalify is complementary to Sepura's existing product range as Sepura's customers are demanding additional software tools and applications. Acquiring Portalify gives Sepura immediate access to an enlarged suite of applications to complement its existing products and meet customer needs.
Gordon Watling, CEO of Sepura, said: "This acquisition is an important strategic step as we continue to develop our complete critical communications solution, and follows the successful acquisition and development of Sepura Systems last year. We were pleased to work with Mills & Reeve and their Finnish colleagues on this important acquisition and were delighted with their attention and support throughout the deal."
The Mills & Reeve team was led by corporate finance partner and capital markets specialist Stephen Hamilton with assistance from associate Richard Lobban and senior solicitor Jonathan Greenwood. Partner Ian Mather provided employment advice.
Finnish legal assistance was provided by Peltonen LMR (who, along with Mills & Reeve, is part of the SCG Legal global network of law firms), PwC provided tax and accounting advice and Oakley Capital Corporate Finance acted as financial adviser. The selling shareholders of Portalify were advised by Finnish firm Lindfors & Co.
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