Private equity firm LDC acquires global ID tech company

Private equity firm LDC has announced its multi-million pound acquisition of global identification tech business Ultra Electronics ID.

Completed for an initial cash consideration of £22m, additional payments of up to £3m will be made over the next two years subject to earnings growth.

Ultra Electronics ID, which forms part of multi-sector technology group Ultra Electronics, pulled in revenues of £19.3m and an operating profit of £4m in 2015.

Based in the UK with sales offices in the US, China and Dubai, Ultra Electronics’ ID business creates proprietary, instant-issuance card printers and associated consumables.

Following the deal with LDC, part of Lloyds Banking Group, ID will continue to operate from its existing facilities, while all employees will retain their jobs.

Ultra chief exec Rakesh Sharma said of the transaction: “Over the past two years, Ultra has conducted a comprehensive review of its portfolio of businesses and capabilities, leading to the introduction of our market segment-based organisational structure.

“This appraisal has also allowed us to consolidate our activities, resulting in a clearer strategy for acquisition and disposal.”

Rakesh continued: “Ultra ID is a sound and profitable business, but one that has become non-core to Ultra’s consolidated portfolio and future plans.

“This first significant divestment by Ultra will allow greater focus on core businesses and longer-term strategy.”