Seven announces £7m takeover of ‘spy gadgets firm’ Datong
YFM Equity-financed deal will create one of the largest covert engineering businesses in the sector
Engineering firm Seven Technologies has announced the acquisition of covert intelligence equipment provider Datong, in a £7m deal financed by YFM Equity Partners.
The deal will create one of the largest independent specialist engineering businesses in the covert equipment sector, with 140 staff and a turnover of more than £20m.
Leeds-based Datong provides a range of covert intelligence gathering equipment and services supplying government defence, law enforcement and homeland security agencies across the globe with particular focus on the US and Middle Eastern Markets.
The deal was partly financed by venture capital firm YFM Equity Partners, which itself acquired County Antrim-based Seven for £6.6m last April.
It follows Datong putting itself up for sale this February following a number of offers to buy the business.
Datong is set to remove itself from the stock market by 9 July as part of the deal.
Paul Cannings, director of YFM Equity Partners, said: “We are very proud to support Seven Technologies in their acquisition of Datong. These two businesses have worked as joint venture partners over the years and share many of the same customers. ”
As a combined group, they are now in a stronger position to capitalise on the increasing demand for their high quality sophisticated equipment and technology services, particularly in the US and Middle Eastern markets.”
Richard Moon, chairman of Seven Technologies, added: “Seven and Datong management and operations teams know each other well and can work to each other’s strengths as they come together.
“The Seven Technologies Group will be in a stronger position to bid for larger and more complex international projects as well as having a greater presence in key markets like the US.”