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(Sharecast News) - Judges Scientific announced on Wednesday that it has taken full ownership of its Brazilian subsidiary, Geotek do Brasil, after acquiring the remaining 18% minority stake for an initial consideration of BRL 13m (1.9m).
The AIM-traded firm said the deal, which included excess cash and a potential earn-out of up to 0.7m, consolidated control of the group's core digitalisation operations in the region.
It said the initial payment would be made in 60 monthly instalments of BRL 324,000, including interest.
An earn-out may become payable if Geotek do Brasil's average adjusted EBIT across 2025 and 2026 exceeded BRL16.1m, which represents the subsidiary's adjusted EBIT for the 12 months to 28 February.
Under the agreement, 18% of 4.5 times any such excess would be due, subject to the 0.7m cap.
Judges Scientific, which specialises in acquiring and developing businesses in the scientific instrumentation sector, said the transaction would be immediately accretive to earnings.
At 1241 GMT, shares in Judges Scientific were up 1.34% at 5.675p.
Reporting by Josh White for Sharecast.com.
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