Solid State grows presence in antenna systems with £0.9m acquisition
REDDITCH-based electronics group Solid State has acquired one of Europe’s leading experts in microwave and RF engineering in a deal worth £0.9m.
Solid State, the AIM listed supplier of industrial/ruggedised computers, specialist electronic components and battery power solutions, said Herefordshire-based Q-par Angus Ltd would enable it to have a presence in the antenna systems sector including microwave reflectors, horn antennas and antenna positioning.
The business will be integrated nto the Steatite rugged systems operation, also in Redditch.
Q-par serves the broadcast, environmental, industrial, medical, security and defence markets. It has a global client list including GCHQ, QinetiQ, the Ministry of Defence, EADS Astrium, Indra, NASA and the US department of Defence. Over 70% of Q-par’s products are exported overseas via a network of specialist sales agents.
Commenting on the acquisition, John Lavery, Managing Director of Steatite, said: “Q-Par is an excellent fit for Steatite, offering a broadening of specialist products and services, however, equally importantly, an existing specialist agent network who can further internationalise our existing Steatite product range. We see this as a truly complementary match.”
Established in 1973, Q-par employs 35 security cleared staff based in Leominster. They are engaged in product research, design and manufacturing. Q-par is MoD approved for the handling of Government encrypted data. A large proportion of its products are based on proprietary designs where Q-par retains the intellectual property and full design files, resulting in a high degree of client retention and repeat order cycles. This affords considerable barriers to entry for competitors.
The unaudited accounts of Q-par for the 12 months ended May 31, 2012, show a turnover of £2.25m and a profit after tax of £214k. Net assets at the time of purchase are expected to be £805,016. Q-par is a high margin business which is expected to enhance Solid State’s margins and be earnings enhancing, albeit that there will be some integration costs incurred in the current year.
In its acquisition statement, Solid State said: “The acquisition of Q-par strengthens Solid State’s product offering in its existing defence, industrial and environmental markets whilst additionally opening up new markets in the fields of medical, counter terrorism and commercial & military intelligence gathering. The board is excited by the prospects for these markets, some of which continue to benefit from global political instability and the ever present threat of insurgent and terrorist activity.”
Gary Marsh, Chief Executive at Solid State, added: “The acquisition of Q-par is our sixth acquisition in the past 11 years and follows the hugely successful acquisition of Blazepoint in October 2011. This demonstrates the continued commitment to our acquisition strategy for our computing, components and batteries businesses and our ambition for the future prospects of Solid State.”
The company also issued a trading update ahead of its full year results, which will be published on June 17.
It said sales and pre tax profits were expected to be in line with market expectations. Order intake remains strong, standing at £9.4m by March 31, 2013.
