Detica back BAE takeover offer

A technology firm involved in the roll-out of intelligence-led UK border security today backed a £531m (€671m) takeover offer by BAE Systems.

Detica, which builds intelligence and analytical systems for commercial and government bodies, said ownership by BAE would boost its growth prospects and allow it to gain critical mass in newer markets such as the United States.

Defence firm BAE said the 440p a share offer represented a premium of 57% on Detica’s share price prior to the start of bid speculation earlier this month.

Detica, which launched in 1971 and listed on the stock market in 2002, is headquartered in Guildford, England with UK offices in London and Cheltenham. It employs 1,500 people, with staff also in Amsterdam, Geneva and the United States.

The company generates around two thirds of its revenues from national security, with the rest coming from telecoms and financial services.

The value of Detica to potential bidders increased after it was included in the Trusted Borders consortium of companies led by Raytheon Systems. The group recently secured the contract for the next phase of the Government’s e-borders programme, which will provide security forces with pre-screening tools to check people entering the UK.

Detica, which is responsible for intelligence and analytical services in the programme, said in February the additional contract was worth £25m (€31.6m), the majority of which will be realised in the next four to five years.