Gateshead technology firm PrismTech sold in $15m deal to Taiwanese firm Adlink
A software company on Tyneside is to be sold to a multi-national tech giant in a deal worth at least $15m.
PrismTech, which is headquartered in Scotland but has its largest site on Gateshead’s Team Valley , will be acquired by Taiwanese firm Adlink in a deal worth $15.5m plus earn out, meaning shareholders will receive an additional return based on future performance.
The company, considered a leading player in the fast-growing Internet of Things (IIoT) market, works in a range of sectors, including energy, transportation, healthcare, aerospace, defence and smart cities.
Clients include Siemens, Boeing, Fujitsu and Thale. Most of its work is in export markets, with its Vortex product attracting attention around the world.
The company, which employs 72 people in total, says the deal will allow it to grow on Tyneside and at its other sites in the UK, Europe and America.
In particular, PrismTech hopes to be able to invest more in R&D thanks to the financial muscle its new parent company will provide.
Prism Tech CEO Lawrence Ross said: “The acquisition will give PrismTech and our Vortex product line a larger global reach (more than 90% of our customers are non-UK), greater financial strength and the ability to create exciting new Industrial Internet of Things products for this fast growing market.
“All staff will be retained with no changes to contracts. We expect over time new roles to be created both here in Gateshead and at our other sites in France, Holland and the US.”
He added: “This acquisition signals Adlink’s commitment to becoming one of the premier players in the IIoT application-ready intelligent platform market.
“I’m convinced that the acquisition will prove to be very positive for our customers, employees and the future direction of our software products. We have built a robust IoT infrastructure and data-connectivity platform over the last few years in our award-winning Vortex product line and Adlink and PrismTech share a vision of the future and potential of the IIoT market.
“In addition to providing us with new levels of market footprint, stability and R&D investment, we believe this acquisition will also result in new innovative combinations of our products that can propel us to become the number one vendor in the vertical markets we jointly serve.”
Jim Liu, CEO of Adlink, said: “The synergy of this acquisition will allow PrismTech to extend its reach and compete on a global basis with the current Vortex product and new developments.
“The complementary products of Adlink and PrismTech with software and hardware provide all the building blocks for the next stage in IIoT development, addressing the issues of increasing complexity and mission critical operational and management data.”
Newcastle-based legal firm Square One Law advised PrismTech on the deal.
Square One Law’s senior partner Ian Gilthorpe said: “I have enjoyed working with the management team on several transactions since 2012 and this acquisition by Adlink is good news for the business and its people as Adlink looks to invest and grow its European presence.”