Digital Barriers offloads video unit, changes focus to Thruvision screening

Digital Barriers has conditionally agreed to sell its video business to private equity firm Volpi Capital for £27.5m cash.

The AIM-listed outfit said the deal comprised a £25.5m cash payment on completion with a further £2m to be paid upon the video division securing certain contracts with 12 months of completion.

In its last trading year, ended 31 March, Digital Barriers generated £24.5m from its video business, but still reported an operating loss of £15.2m.

The surveillance provider said proceeds from the video unit's disposal would provide a "robust balance sheet" for its on-going Thruvision business after paying down the company's £6.2m of existing debt.

Thruvision, which will become the group's trading name, is a camera technology used by police or security forces for 'people-screening' crowded scenes to detect weapons, explosives and other items concealed under clothing.

The firm said in its Monday trading update, "The board believes that the terms of the disposal represent good value for shareholders and appropriately values the future growth of the video business against the uncertain nature and timing of that growth, which could require additional funding."

As of 1515 BST, shares had dipped 8.08% to 17.35%