SENS-TECH acquired by DISCOVERIE GROUP
Context
discoverIE Group plc has acquired 100% of Xi-Tech Limited and its subsidiary Sens-Tech Limited. The deal includes a further contingent cash consideration of up to 12.0 million GBP, payable over a three-year period subject to specific profit growth targets. To support the transaction and maintain its balance sheet strength, discoverIE launched a proposed placing of new ordinary shares to raise gross proceeds of approximately 33 million GBP. The strategic rationale for the acquisition is to enhance the Group's underlying operating margins and expand its international footprint, particularly in North America and Asia. Sens-Tech’s specialized sensing modules for medical and security markets align with discoverIE’s focus on high-growth, long-life cycle industrial applications. The acquisition is expected to be immediately accretive to underlying EPS.
By taking control of Sens-Tech, Discoverie Group continues its expansion strategy. Previously, the group had completed 2 acquisitions, including Positek in 2019.
SENS-TECH, which reported an EBITDA margin of in 2018, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (15.1x).
-> Deep-dive in TMT (Tech, Media, Telecom) market trends
Target
Sens-Tech Limited is a specialist UK-based designer, manufacturer, and supplier of high-performance sensing and data acquisition modules. The organization focuses on x-ray and optical detection applications, providing critical components for the transport security (luggage and cargo scanning), medical (diagnostic imaging), food processing, and industrial inspection markets. Its technology suite includes specialized detectors and electronics that convert x-ray and light signals into digital data for high-resolution imaging. With a global customer base and approximately 70% of its revenues generated in North America and Asia, the entity specializes in customized, application-specific products designed for long life-cycle equipment. The group has a long-established track record of supplying high-quality, high-margin electronics to original equipment manufacturers (OEMs) worldwide, benefiting from structural growth in safety, security, and healthcare automation.
Ent. Value
Equity Value
Multiples
EV / Revenue
EV / EBITDA
EV / EBIT
Historical Financials (GBP)
Similar deals in Hardware & Electronics
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 03/2020 | TE CONNECTIVITY | FIRST SENSOR | GERMANY | Sensors & Optics |
| 02/2020 | GLORY GLOBAL SOLUTIONS | ACRELEC | FRANCE | IT Equipment |
| 10/2019 | NANOMETRICS INCORPORATED | RUDOLPH TECHNOLOGIES | UNITED STATES | Semiconductors |
| 04/2019 | DISCOVERIE GROUP | POSITEK | UNITED KINGDOM | Sensors & Optics |
| 04/2019 | DISCOVERIE GROUP | HOBART ELECTRONICS | UNITED STATES | Sensors & Optics |
| 03/2019 | LBO FRANCE | GROUPE PASSMAN | FRANCE | IT Equipment |
| 05/2018 | THE CARLYLE GROUP | HGH SYSTÈMES INFRAROUGES | FRANCE | Sensors & Optics |
| 12/2017 | LBO FRANCE | CROUZET | FRANCE | Sensors & Optics |
| 10/2016 | CHARTERHOUSE | SAGEMCOM | FRANCE | IoT & Connected Objects |
| 10/2016 | ANDERA PARTNERS | ACB GROUP | BELGIUM | Electronic Components |
REFERENCES
Valuation range: EV 50M - 150M GBP
Revenue range: 5M - 25M GBP
Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of SENS-TECH by DISCOVERIE GROUP are reserved for mynth community members. Register for free to unlock full data.
Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Press release: view release
Acquirer: discoverie group