SciDev Ltd (ASX: SDV) shares are flying higher after the company released an important announcement earlier today. At the time of writing, the SciDev share price is trading 10.64% higher at 78 cents after hitting an intraday high of 80 cents in earlier trade.
Here's why investors are jumping to buy shares in SciDev today.
SciDev share price boosted on acquisition news
The SciDev share price is responding favourably after the company announced it is set to acquire the business of Haldon Industries Pty Ltd.
According to the announcement, the acquisition will have a maximum consideration of $16.9 million. SciDev will issue shares to Haldon principals at 80 cents per share. In addition, a cash payment of $1.7 million will be processed on completion.
Haldon is an Australian-based environmental engineering company focused on the water and organic pollutant sector. The company has a strong presence in the Polyfluoroalkyl (PFAS) market in Australia through its mobile treatment plants.
SciDev noted that the acquisition of Haldon will provide the company with greater presence and scale in water infrastructure and wastewater verticals. SciDev's management highlighted that the acquisition will accelerate the company's plans to enter the global market.
What is the outlook for SciDev?
SciDev is a leader in the development and application of solids to liquid separation. The company combines technology and chemistry to solve operational and environmental issues in the water, oil, gas and construction markets.
In further news driving the SciDev share price today, the company also released an investor presentation to supplement its acquisition announcement. The company noted that the acquisition will deliver various strategic opportunities.
Firstly, SciDev will have access to the growing PFAS market in Australia with the ability to deliver a full treatment solution. In addition, the company expects to leverage its engineering and technology to drive further business development opportunities.
SciDev also highlighted that the acquisition will help it to diversify revenue streams whilst also providing it with a larger talent pool. The company also looks to expand its supply chain and end commodity exposure with the ability to provide direct chemical sales to Haldon customers.
SciDev made headlines earlier this month after it announced a partnership with Fortescue Metals Group Limited (ASX: FMG).
