Redflex drives Allied's offshore efforts

Redflex drives Allied's offshore efforts

Allied Technologies Group has acquired systems integrator, Redflex Communications Systems, to boost its local and international public sector sales. The deal has an anticipated value of $8.2 million.

Redflex provides integrated hardware and software solutions based upon digital switching and communications technologies through its Switchplus products.

Allied has made an upfront payment of $4 million in cash. The balance will be calculated based on Redflex's 2007 earnings and be payable on September 14 next year. The value of the communications group at June 30 was about $8.8 million.

Allied CEO, Michael Addison, said Redflex would help it grow its presence in defence, security and intelligence markets locally and globally. Both had a crossover in customers, including the Australian Department of Defence. Redflex also recently won a $1.4 million contract with the Royal Australian Navy to upgrade its communication equipment on its navy landing craft.

"It offers us a significant spring broad into the offshore markets, which is where the majority of their revenue is generated," Addison said. Redflex will run as a separate entity with all 30 staff expected to be retained.

Allied is continuing to scan the market for potential acquisitions engaged in defence and intelligence sectors.

"We want companies that have world leading, Australian intellectual property that we believe can be commercialised locally and offshore," Addison said.

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