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Highlights
- Oxford Metrics is acquiring Sempre Group for up to £5.5 million, with £5 million paid in cash and up to £0.5 million contingent on business performance targets.
- Sempre's metrology solutions and industry expertise will enhance Oxford Metrics' smart sensing and software capabilities, particularly benefiting sectors like aerospace, automotive, and precision engineering.
- The acquisition is expected to be immediately earnings-enhancing, with Sempre reporting revenues of £6.5 million in 2023 and a positive outlook for future growth.
Oxford Metrics plc (LSE:OMG), a leading smart sensing and software company, has announced the acquisition of The Sempre Group Holdings, a specialist in measurement solutions that address manufacturing challenges across various industries. This strategic move aims to enhance Oxford Metrics' offerings in life sciences, entertainment, engineering, and smart manufacturing markets.
Acquisition Details
- Total Consideration: The acquisition of Sempre has a total consideration of up to £5.5 million. This amount is subject to customary adjustments for working capital, cash, and debt-like items.
- Funding Structure:
- The deal will be financed primarily through £5.0 million in cash from existing resources.
- An additional up to £0.5 million will be paid via an earnout contingent on Sempre achieving specific business performance targets.
- Earnings Impact: The acquisition is anticipated to be immediately earnings-enhancing for the Group.
About Sempre
Founded in 2000 and based in Gloucester, Sempre is recognized for its deep industry knowledge and established sales and services organization. The company specializes in high-precision metrology solutions, which are essential for improving productivity and efficiency in quality control and inspection processes.
- Partnerships: Sempre collaborates with over 25 prominent manufacturers, including Jenoptik, Renishaw, and Micro-Vu, providing a comprehensive range of products and software designed to address complex manufacturing challenges.
Acquisition Highlights
- Valuable Expertise: The acquisition brings in-house consultants with significant industry expertise, along with hardware and software solutions to tackle manufacturing challenges effectively.
- Synergies with IVS: Sempre will gain access to resources and support to expand into new markets, while IVS will benefit from Sempre’s established sales organization and industry knowledge.
- Bespoke Solutions: Sempre offers a wide array of solutions, including measuring, automation, inspection management, and compliance reporting. The integration with IVS will facilitate the development of customized products that meet specific customer needs.
- Established Partnerships: The collaboration with blue-chip manufacturers enhances Sempre’s credibility and expands its portfolio of premium metrology solutions.
- Industry Exposure: The acquisition strengthens Oxford Metrics’ position in multiple sectors, including aerospace, automotive, medical, energy, and precision engineering, reinforcing its commitment to quality 4.0 standards.
- Management Continuity: Sempre’s directors, Jim Mangan and James Denham, will continue to lead the company, ensuring a smooth transition. Additionally, founder Mike John will remain in a consulting role to aid in integration efforts.
- Financial Stability: Sempre has demonstrated a profitable track record, achieving an average revenue growth rate of 8% over the past four years. For the year ending 31 December 2023, Sempre reported unaudited revenues of £6.5 million, with a profit before tax of £0.7 million and net assets totaling £1.7 million. Recent trading indicates a positive trend in performance.
