Coffey makes a further two acquisitions
Coffey International Limited (COF) announced the acquisition of Global Justice Systems (“GJS”) and Libra Advisory Group Limited for a total of $8.32 million. The company said both have been funded from existing cash reserves and have earn-outs based on performance over the next two years.
Coffey said it paid $4.9 million for 100 per cent share capital in Australian and UK based consulting and project management business GJS, and paid $0.42 million in cash and $3 million in shares for UK-based firm Libra Advisory.
The company said GJS has annual revenue of approximately $9 million and Libra has annual revenue of approximately $3.3 million.
Managing director, Roger Olds, said the addition of the businesses represents an opportunity to address changes occurring in the international development services market.
“The UK Government has been the world leader in bringing together development, defence, and diplomacy (the 3Ds), and Libra has led the UK market in providing specialist consulting services for the 3Ds,” Mr Olds said.
”GJS has been a key supplier in Justice Sector Reform and Rule of Law across many nations.”
Mr Olds added that both companies have been key sub-contractors to Coffey and prime contractors in their own right, while they would create market leading capability globally which would further enhance Coffey’s capability to deliver major projects.
“These projects are being created and delivered by our traditional aid clients, but there is also a new segment of government clients that are charged with stabilising communities using these new skill sets as opposed to conflict,” he said.
”Coffey is very keen to be playing a growing role in this new approach to global stabilisation,” he said.
At the close of trade Tuesday, Coffey shares were trading at $1.85.
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