Image Scan to Acquire Todd Research
Image Scan (AIM:IGE), the specialist supplier of X-ray screening systems to the security and industrial inspection markets has announced that, subject to the approval of its shareholders at a General Meeting on 7th August, it will acquire Todd Research Limited, a UK based designer, manufacturer and supplier of X-ray scanners, across a diverse range of public and private market channels. The seller is Supply 999 Holdings Ltd.
Image Scan is familiar with Todd Research’s products and, under a distribution agreement signed in 2016, has demonstrated that new markets can be found for them through the Company’s extensive routes to international security markets.
Image Scan and Todd Research bring together complementary expertise, complementary technology and access to complementary markets, helping the enlarged group enhance its position as a leading provider of security solutions. Todd Research will be integrated into Image Scan’s trading subsidiary, 3DX-RAY Limited.
Image Scan will use its extensive network of international partners to promote Todd Research’s products into a wide range of international markets where they have not previously been sold, drawing on the experience of marketing these products under the distribution agreement. Image Scan will also seek to exploit Todd Research’s strong UK customer base to seek new outlets for its portable X-ray systems.
Technical synergies will also be explored. Image Scan will investigate how its wide portfolio of X-ray technology, detection techniques and image processing algorithms can be used to enhance Todd Research’s cabinet X-ray products to further increase their competitiveness and create new opportunities.
Supply 999 Holdings Limited has entered into an agreement to sell 100% of the shares of Todd Research Limited (TRL) to Image Scan Holdings plc.
Image Scan Holdings plc (AIM: IGE) are specialists in the field of X-ray imaging for the security and industrial inspection markets, with a well developed export presence. As such, the two businesses complement each other geographically, with TRL having a strong UK presence.
Additionally, there are great technical synergies between the two companies and TRL will benefit from IGE’s strong technical knowhow and proven product development skills. The businesses already had a strong working relationship and mutual product understanding, as IGE has been a customer to TRL for a number of years.
The board of Supply 999 Holdings Limited is delighted that TRL is moving to a group that will give the business the opportunity to continue to grow and fulfil its potential.
Bill Mawer, Chairman and Chief Executive Officer of Image Scan commented: "We are excited by the opportunities which this acquisition brings. We already know Todd Research well, having successfully sold their cabinet X-ray systems over the last two years. For us, the acquisition is about quality of earnings and growth and, with its recurring revenue, high profitability and synergistic product range Todd Research will significantly enhance our business. Our immediate focus will be to develop new export channels through our extensive network of international partners and we are already primed to do this."
Derek Gotts, exiting Managing Director of Todd Research Ltd and board director of Supply 999 Holdings Ltd commented:
"We are delighted to have developed our relationship with Image Scan to this point; we believe that they will have the scale, passion, people and opportunity to develop the combined business to the benefit of the group’s performance. The high level of after sales service and support offered by Todd Research Limited ensures long term customer relationships whilst the latest technology applied on the Todd Research equipment gives un-rivaled image quality to detect and protect."
About Image Scan Holdings plc
Image Scan Holdings plc (AIM: IGE) is focused on the development and commercialisation of market leading real-time X-ray solutions for use in the global Security and Industrial inspection markets. The Company’s Security portfolio includes the ThreatScan® range of portable bomb and suspect package detection systems; the Axis range of baggage inspection systems; and SVXi, a small vehicle inspection system. The Industrial inspection solutions include the MDXi product range, cabinet X-ray systems for laboratories and production lines. The Company was founded in 1996 and joined AIM in 2002.
About Todd Research Ltd
Todd Research is a private, UK based designer, manufacturer and supplier of X-ray scanners, across a diverse range of public and private market channels. Its primary product range consists of cabinet X-ray scanners used for scanning mail and small packages in mail rooms, and in government and commercial buildings. The business services an array of markets and its customers include Government bodies, financial services companies and large international corporate entities.