The Codan share price has changed direction this afternoon, however, and is currently trading at $16.90, up 0.33%.
Codan is a communications and technology company that works to create technologies for use in harsh conditions. It produces radios, metal detectors, and mining automation systems which it provides to a number of users including Five-Eyes’ militaries and intelligence agencies.
Let’s take a closer look at the technology company’s latest acquisition.
In today’s release, Codan advised it now owns all shares in United States-based tech company, Domo Tactical Communications.
Codan said the acquisition cost US$88 million in cash, adding it may need to pay another US$16 million if Domo Tactical reached specified earn-out targets before the end of this year.
The US business appears to fit well with Codan’s other communications and technology business ventures.
Domo Tactical is a technology company specialising in high bandwidth wireless communications and MIMO Mesh networks. It also works to create overt and covert surveillance systems, and also builds technological communications systems in challenging environments including public spaces, border control, large sporting events, and war zones.
Codan first announced it was acquiring Domo Tactical in February this year. When the news was announced, the Codan share price hit what was then an all-time high of $13.64 in intraday trade.
Codan purchased Domo Tactical Communications from DTC Management Topco, an entity of Marlin Equity Partners.
Codan Ltd share price snapshot
The Codan share price has wobbled after today’s acquisition news. Long-term shareholders needn’t worry yet though.
The Codan share price is currently up 49% year to date and has gained 152% since this time last year.
Codan has a market capitalisation of around $3 billion, with approximately 180 million shares outstanding.