AIM-listed Journeo plc has completed a strategic £13.7 million acquisition that significantly expands its capabilities in critical national infrastructure protection.
The transport technology specialist has acquired Crime and Fire Defence Systems Limited (CFDS), a company that specialises in protecting the UK’s most sensitive facilities from physical and cyber threats.
Journeo’s shares were 4% higher at the time of writing on Tuesday.
Strategic Expansion Into High-Security Markets
CFDS brings expertise in safeguarding critical national infrastructure including power plants, water facilities, and high-security industrial sites. The company provides cutting-edge access control systems, perimeter intrusion detection, and advanced thermal surveillance technology.
The acquisition opens exciting cross-selling opportunities with CFDS’s blue-chip client base of multinational utilities and industrial companies.
Strong Financial Performance Drives Deal
CFDS delivered attractive results for the 12 months ended April 2025, with audited revenue of £17.33 million and profit before tax of £1.36 million. The company’s net assets stood at £3.93 million.
Journeo expects the acquisition to boost current year revenue by £4 million and add £0.4 million to profit before tax in the remaining four months of FY25.
Looking ahead to FY26, the deal is projected to increase revenue by £17 million and adjusted profit before tax by £1.4 million above current market expectations.
Deal Structure and Funding
The total consideration comprises £10.7 million in cash from existing resources, £2 million in deferred payments over 24 months, and £1 million through new share issues with a minimum 24-month holding period.
With CFDS bringing over £1 million in cash, the enlarged group will have an aggregate cash balance of £9 million post-completion.
Over the past four years, Journeo has invested more than £6 million in research and development while achieving remarkable growth rates. The company has delivered a 38% compound annual growth rate in revenue and an impressive 102% CAGR in profit before tax.
Previous acquisitions of Infotec and MultiQ Denmark in 2023 have already strengthened Journeo’s market position across fleet operations and local authority sectors.
Today’s acquisition helps deliver on Journeo’s ambitious three-year goal to reach £100 million in revenue while maintaining strong profit margins.
“We are delighted to announce the acquisition of CFDS, a recognised leader in utility Infrastructure Protection solutions,” said Russ Singleton, Chief Executive Officer.
“This acquisition aligns with our strategy of taking our core capabilities into adjacent markets and strengthens our offering and broadens our reach. We look forward to working closely with the CFDS team to unlock value and deliver enhanced integrated solutions to a broader client base.”