Spectra Systems announces major acquisition of Cartor Holdings for £10.5m

Spectra Systems Corporation (AIM: SPSY.L), a frontrunner in high-speed banknote authentication, brand protection technologies, and gaming security software, has announced a significant expansion in its business operations with the conditional agreement to acquire Cartor Holdings Limited (“Cartor”), a leading company in the security printing industry. This acquisition, valued at a maximum of £10.5 million, is set to reshape the landscape of the polymer substrate market.

The acquisition, subject to customary conditions, is expected to be completed in December 2023. It signifies a strategic consolidation of Spectra’s supply chain for its Fusion polymer substrate within the enlarged group, and is anticipated to bring increased margins on polymer substrates.

Upon completion and integration of Cartor into the group, the acquisition is expected to open new sales opportunities for Spectra security products in various sectors including postage stamps, tax and revenue stamps, brand protection, and other security documents. It will also enhance product development capabilities with direct access to Cartor’s state-of-the-art printing capabilities.

Expansion in Security Printing: Spectra Systems to Acquire Cartor Holdings

Cartor, operating from two manufacturing sites in the UK and France, is known for supplying postage stamps to over 180 administrations globally. Its unique use of technology sets it apart in the industry, making it difficult for counterfeiters to replicate products and services of high monetary or intellectual value.

The acquisition terms include a £5.5 million cash payment on completion, up to £3.0 million subject to adjustments, and a potential further sum of £2.0 million, dependent on certain milestones. Additionally, Spectra will assume up to £4.5 million of Cartor’s current external debt.

The international polymer substrate market, currently dominated by only two suppliers, is set for disruption with this acquisition. Spectra’s collaboration with Cartor over the past two years has been instrumental in developing high-quality, machine-readable, ready-for-printing polymer substrates.

Dr. Nabil Lawandy, CEO of Spectra, expressed excitement about the acquisition, praising the leadership of Cartor’s team and looking forward to leveraging their expertise to increase revenues and earnings. Andrew Brigham, Managing Director of Cartor, echoed these sentiments, anticipating growth and unlocking new opportunities under Spectra’s leadership.

Ian Brigham, Chairman of the Board of Cartor, also expressed enthusiasm for the new chapter in partnership with Spectra, aiming for growth through new opportunities.

This acquisition is a game-changer in the security printing industry, bringing together Spectra’s advanced security technologies and Cartor’s operational expertise. It is poised to deliver innovative solutions to the current and future customers of both companies, solidifying their position in the global market.