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Highlights
Journeo acquired CFDS for £13.7m (USD 17.9m), improving its infrastructure protection segment.
Acquisition expected to add £4m (USD 5.2m) revenue and £0.4m (USD 0.5m) PBT in FY25, with a larger uplift forecast for FY26.
Journeo reaffirms its strategic target of reaching £100m (USD 130m) revenue in the medium term.
Journeo plc (AIM:JNEO), a provider of information systems and technical services for public transport and local authorities, has announced the completion of its acquisition of Crime and Fire Defence Systems Limited (CFDS), a UK-based systems integrator specialising in physical and cyber security solutions for Critical National Infrastructure, Defence, and Utilities.
Transaction Details
The acquisition values CFDS at approximately £13.7 million (USD 17.9 million). The deal consists of £10.7 million in cash funded from existing resources, £2 million in deferred cash payments payable in equal instalments over the next two years, and £1 million through new ordinary shares issued to the vendors, subject to a 24-month minimum holding period. CFDS is expected to hold more than £1 million in cash at completion, leaving the enlarged group with a combined cash balance of £9 million (USD 11.8 million).
The transaction received approval from the Cabinet Office under the National Security and Investment Act on 22 August 2025.
About CFDS
CFDS provides integrated security solutions to safeguard critical infrastructure such as energy, water, transport, and communications networks. Its portfolio includes advanced access control systems, perimeter intrusion detection, and high-performance thermal, infrared, and visual surveillance technologies.
The business has experienced significant growth in recent years and maintains a project pipeline with multinational clients in the utilities and industrial sectors.
Financial Contribution
For the year ended 30 April 2025, CFDS reported audited revenue of £17.33 million (USD 22.6 million), profit before tax of £1.36 million (USD 1.8 million), and net assets of £3.93 million (USD 5.1 million).
The acquisition is expected to contribute approximately £4 million (USD 5.2 million) in revenue and £0.4 million (USD 0.5 million) in profit before tax in the remaining four months of FY25. This will enhance current market expectations of £52 million (USD 67.8 million) in Group revenue and £5.2 million (USD 6.8 million) in adjusted profit before tax. Looking ahead to FY26, management expects an additional uplift of £17 million (USD 22.2 million) in revenue and £1.4 million (USD 1.8 million) in adjusted profit before tax.
Strategic Rationale
The acquisition expands Journeo’s capabilities in “cost of failure” solutions, extending its portfolio from passenger information systems and transport technology into national infrastructure protection. Journeo has invested over £6 million (USD 7.8 million) in Research and Development during the past four years, alongside previous acquisitions such as Infotec and MultiQ Denmark in 2023, which contributed to a compound annual growth rate (CAGR) of 38% in revenue and 102% in profit before tax.
Journeo’s long-term strategy includes targeting £100 million (USD 130 million) in revenue within three years through a balanced mix of acquisitions and organic growth. The company will now operate across three core categories: Integrated Services, Information Systems, and Infrastructure Protection.
