Balfour Beatty, the construction and engineering group, is to acquire Integral Technologies for $50m. Integral is a US company which develops digital imaging solutions and products for the security and surveillance industry.

Balfour will pay $30m in cash on completion of the acquisition with a further $20m payable on an earn out basis against achievement of agreed financial targets. The value of net assets being acquired is about $7m.

Balfour Beatty will make Integral part of Andover Controls, its US-based automated building management controls business. Integral, based in Indiana, had 1999 revenues of $15m with operating income before interest and taxes of $3.4m.

Commenting on the transaction, Mike Welston, chief executive of Balfour Beatty, said: "The acquisition of Integral further develops the range of services which we are able to offer the international building, building management and services market. Andover Controls' leading position in the automated management market will be significantly enhanced as a result."

Anna Lagerkvist