Midwich has acquired a majority stake in Cardiff-based distributor DVS due to its cunning plan to get into the CCTV and security market.
The HikVision and Toshiba distributor was founded in 2003 and is based in Cardiff. Operating through parent company Cooper Projects Limited, the firm offers CCTV and security solutions for trade customers in verticals including corporate, retail, and residential.
Midwich claims DVS has diversified its portfolio in recent years to include adjacent technologies, including access control, intercom and intruder detection.
DVS turned over £37.4 million in its last financial year ending 31 October 2020 and generated pre-tax profits of £2.1 million.
Midwich has acquired a 65 percent stake in the DVS business, which will be funded through its current finances and is expected to contribute to its earnings for full-year 2022.
Midwich has the option to acquire the remaining 35 per cent share in the business in three years or later for up to £20 million. The maximum aggregate consideration for the purchase of 100 per cent of the company is £35 million, Midwich claims.
CEO Stephen Fenby said the deal could make Midwich a significant player in the security market, where it has previously held little presence.
“The acquisition of DVS gives Midwich access to a significant segment of the Security market in which we currently have little presence and which is expected to grow at more than eight per cent per annum for the next five years.
DVS’s existing management team – MD Tim Goodson, commercial director Gavin Dunleavy and chief technology officer David Davies – will maintain a stake in the company and work with Midwich.
“At DVS, we have always had ambitious growth plans and combining with Midwich gives us a unique offering to our loyal customer bases. The Midwich team quickly understood our available technologies and how their customers could also use them in an ever-converging space. We are super excited to be part of the Midwich Group, which has a wealth of experience and knowledge that we can utilise to make sure our ambitious plans are met as we look to grow DVS,” said Goodson.
