Canaccord Genuity’s analysts predict that the acquisition of technology firm Eagle Newco by Australia’s Codan will hasten the company’s plans for expansion into the UK and European Union.

Codan (ASX:CDA) recently declared its intention to acquire a UK-based command and control solutions business, Eagle Newco, in a deal worth A$22 million.

The transaction is projected to be approximately 4% EPS accretive by FY25, according to Canaccord.

It continues to uphold a ‘buy’ rating for the company, raising the Price Target to A$8.46 from A$6.18.

A survey found that out of seven analysts, three assigned the stock a ‘buy’ or a higher rating, whilst the remaining four opted for ‘hold’.

Their median Price Target stands at A$8.10, according to Refinitiv data.

CDA shares have seen a slump as much as 1.7% to A$7.70, though they remain 91% on the up this year till the latest closure.

Codan (ASX:CDA) is an Australian company specialized in developing robust technology solutions for communications, safety, security and productivity problems in the harshest environments on earth.