Judges Scientific PLC on Friday said that its subsidiary, Geotek Ltd, has bought Rockwash Geodata Ltd for an initial consideration of £2.3 million.

Judges Scientific is a London-based company focused on acquiring and developing businesses in the scientific instrument sector. Shares in the company were trading fractionally lower at 10,098.00 pence each in London on Friday morning.

Geotek, meanwhile, is focused on the acquisition and non-destructive analysis of geological cores. It has bought Rockwash, a company which specialises in rock cuttings and chippings digitalisation.

The initial consideration is £2.3 million in cash, plus an earn-out payment due in 2025, or 2026, equal to six times the adjusted earnings before interest and tax for the year ended December 31, 2024, or 2025. The total consideration is capped at £6 million, which could be achieved if adjusted Ebit for either period equals or exceeds £1 million.

As Judges Scientific explained, an additional payment will also be made to reflect any excess working capital over and above the ongoing requirements of the business.

It expects the acquisition will be ‘strongly synergistic’ with the core digitalisation activities of Geotek, as they share a similar customer base, and a ‘common purpose of digitalising information from geological samples’.

‘We are pleased to incorporate Rockwash, a market leader in its niche, into the Judges group. The board believes that the cooperation of Geotek and Rockwash will benefit their customers and the growth of their digitalisation businesses,’ said Chair Alex Hambro.

Copyright 2024 Alliance News Ltd. All Rights Reserved.