An eight-year-old company that allows facilities manages to store electrical safety data online has been bought for £12m by building safety group PTSG.
Publicly listed PTSG is raise £20m from issuing new shares to acquire Guardian Electrical Compliance, based in Sheffield and creator of the TraQ-It software.
Guardian is a privately-owned specialist in electrical safety services, focusing on testing and compliance services to meet the legal requirements of building owners and managers around electrical safety. The company has 850 customers, including BAE Systems, GlaxoSmithKline, Next, Siemens, Tata, Unilever and Nestle, and has a retention rate of 90%, with a focus on long-term service contracts.
PTSG said it intends to integrate TraQ-It with its own Clarity platform, to provide a stronger software solution for existing and new customers. Guardian’s current owners, Ian Carnall, John Quick, Richard Roebuck and William Sutherland, will remain in the business to grow and expand its operations, which will be integrated into PTSG’s Electrical Services Division.
Guardian has a 22% operating profit margin and turned over £8.3m last year. PTSG will pay a further £4m to Guardian’s owners over the next three years if “stretching performance targets” are met.
Paul Teasdale, CEO of PTSG, commented: “Guardian is a highly complementary and attractive acquisition. It has an exceptional growth track record, management team and large blue-chip customer base. Critically it fits our clear acquisition model by presenting significant opportunities for cross-selling additional PTSG services as well margin improvement whilst supporting our long-term goal of sector dominance.
“The transaction also reflects our determination to grow further our revenues from compliance related services that now stand at record levels. Furthermore, we believe Guardian’s proprietary software is unique in the market and, when combined with our own in-house platform, Clarity, will provide our customers with a highly advanced and compelling compliance solution.”