Mitie Group plc (LON:MTO) has announced the acquisition of GBE Converge Group, a leading independent provider of fire, security and information and communications technology solutions, for a maximum cash consideration of £27m[1] (comprising an initial payment of £20m and deferred payments of up to £7m over three years, linked to performance).
GBE has over 20 years of experience delivering a broad range of fire and security solutions, including fire detection and suppression systems, access control, intruder alarms, CCTV, and security management systems. The company also provides the ICT and network infrastructure to support these systems, offering customers fully integrated solutions and ongoing management and monitoring.
GBE works with customers across all major market segments in both the UK and Europe, including for government and in the construction, data centres and ICT sectors. It holds key industry certifications, including accreditations to install and maintain systems for many of the leading equipment manufacturers, such as AMAG, Cisco, Honeywell and Siemens.
The acquisition builds on Mitie’s position as the leader in the intelligence and technology-led Fire & Security markets and follows the recent additions of Linx International (April) and RHI Industrials (May). GBE also has the potential to provide complementary services to JCA Engineering (acquired in September) in delivering complex engineering projects in critical environments, such as data centres.
For the 12 months ended 31 December 2022, GBE’s revenue was £36m (17% yoy growth) with EBITDA of £2.4m (53% yoy growth).
The acquisition will be funded from Mitie’s existing facilities.
Phil Bentley, Group Chief Executive, Mitie, said:
“We are delighted to welcome the GBE team to the Group. As our customers’ needs for facilities transformation evolve and demand grows for ‘smart buildings’, Building Management Systems are increasingly converging with Fire & Security platforms. The acquisition of GBE brings sophisticated intelligence-based Fire & Security capabilities and enables Mitie to broaden the range of projects we can self-deliver for our customers in the built environment.”
Jason Buttle, Found & Chief Executive, GBE Converge Group, said:
“Joining the Mitie Group and having access to their blue-chip customer base and financial strength will lead to greater opportunities to grow our business. I am excited about what the coming years will bring.”
[1] On a cash free, debt free basis with a normalised level of working capital.
