Engineering solutions firm, Costain, has announced that it has acquired Simulation Systems Limited (SSL) for £17 million.
Funded by the groupâs existing cash and debit facilities, the deal will see SSL fully integrated by Costain into its operations in the current financial year.
SSL, which employs 165 people and was established in 1979, enjoyed a £15.1 million turnover in their previous set of results.
The company provides both software and hardware solutions for traffic management and monitoring systems to a number of blue chip clients including Transport for London and Highways England.
Meanwhile, Costain is a huge engineering firm that has their own range of high profile clients, as seen by their partnership with Skanska in the development of the new Paddington Crossrail station. Skanska will also benefit from SSLâs management and monitoring technologies.
After the deal was announced to the Stock Exchange, Costainâs Chief Executive, Andrew Wyllie CBE, said that the company is pleased to be announcing the acquisition of SSL, which fits in with the companyâs outlined objective of business growth acceleration through a combination of acquisitive and organic growth.
Costain shares were trading up 2.4% at 292.50 pence on Wednesday morning (July 6).
“This transaction will further broaden our ability to deliver innovative technology-based solutions to meet the increasingly complex requirements of our major blue chip customers in energy, water and transportation, Wyllie added.
The existing senior management team of SSL, including Managing Director Louis Thompson, are to remain part of the business.
SSL and its major shareholders were advised by teams from Burges Salmon based in Bristol, led by Rupert Weston, along with Bishop Fleming Corporate Finance, led by David Abbott.
In 2013, SSL won the Queenâs Award for Enterprise in Innovation and has also featured in the Sunday Times and Microsoft TechTrack listings on several occasions.