VI Group, suppliers of CAD/CAM software to the international plastics manufacturing industry, has entered into a conditional agreement to acquire Italian-based software consultancy Plastics & Computer International (‘P&C’). The deal marks VI Group’s first entry into the analysis and Computer Aided Engineering market.
The acquisition is conditional upon the completion of certain formalities. The agreed consideration of £550,000 (€810,000) will be satisfied in cash made in three stage payments over the next two years.
Milan-based Plastics & Computer was established in 1983. It makes and licenses software for the analysis and simulation of plastic materials within injection moulds. The company’s software allows its customers to model accurately how different materials will perform inside the moulds and dies.
Its customers include Fiat in Italy and the multi-national Flextronics, which is based in the US. The company has been selling its products labelled as VISI-Flow through its Italian subsidiary for more than a year.
For the 12 months leading to December 31 2005 P&C made profits before tax of £37,000 on turnover of £282,000. The acquisition includes offices owned by P&C, recently valued at approximately £260,000, and liquid financial assets of approximately £200,000.