Insider Media Limited

Surveillance technology specialist Quadnetics Group has purchased German rival Indanet AG for up to £8.7m. Warwickshire-based Quadnetics said the deal was built on the back of "a long-term relationship" with Berlin's integrated transport authority.

Munich-based Indanet AG produces integrated surveillance and security management systems to the transport industry.

Quadnetics said the maximum consideration for the acquisition was €10m (£9m), of which €2m (£1.7m) was paid on completion for 51 per cent of Indanet's issued share capital.

Further consideration of between €1m (£871,000) and €8m (£6.9m) for the remaining 49 per cent of the share capital will be payable in three tranches between 2013 and 2015, dependent on Indanet's profits for the period from completion to 31 May 2015.

The cash element of the consideration will be funded from existing resources and from an extension of Quadnetics' existing bank facilities.

Indanet's customer base includes Deutsche Bahn and the organisations responsible for public transport in Berlin, Munich and Frankfurt.

John Shepherd, chief executive of Quadnetics, said: "Indanet is a high quality organisation which has been built on the back of a long term relationship with the Berliner Verkehrs Gesellschaft (BVG), the Berlin integrated transport agency. It has expanded that core position into similar organisations which are responsible for the Frankfurt and Munich transport systems, and into Deutsche Bahn, the German national long distance and regional railway operator.

"Indanet brings to Quadnetics a strong base in Germany, which we have identified as the ideal European base for expanding all of Synectics' product offerings into central, eastern and northern Europe, something which is difficult to do from the UK."