There is a deferred cash consideration of up to $8.3m – conditional upon future profitability targets.
The acquisition has been funded from existing resources and is expected to be slightly earnings enhancing in the financial year ending December 31 2007.
Gareth Rhys Williams, chief executive of Vitec, said: “The board believes that Tomcat, with its presence in the live event market, especially in the United States, and its high quality brand image, is a highly complementary fit with our existing European-based staging structures business.”
He added: “With the additional benefits of shared sourcing in Europe, the acquisition has the potential to accelerate growth and generate attractive returns for the group’s shareholders.”
