Redditch-based Solid State, a component supplier and design-in manufacturer of computing, power, and communications products, has acquired Q-Par Antennas USA LLC for a maximum consideration of US$2 million, providing the Worcestershire firm with an opportunity to further invest in the medium term growth opportunity in the US markets.
Q-Par will join the systems division of the group.
Established a decade ago, Q-Par is a highly regarded distribution name in providing antenna systems and related technologies, mainly for defence and security applications.
It has a loyal client base underpinned by valuable approved supplier status agreements.
In the 12 months to September 30 this year, Q-Par generated total revenues of US$2m, albeit, when adjusted for intercompany (Solid State) sales, third party revenues were US$0.4m and profit before tax was US$0.2m.
The acquisition will be funded from Solid State's existing cash resources, with an initial consideration of US$0.5m in cash payable on completion.
A further US$0.5m is due in the first week of January, 2025, while a further deferred payment of US$0.5m will be paid out in cash over two years.
Earn-out consideration of a further US$0.5 million may be payable subject to exceeding certain growth and performance targets.
Gary Marsh, CEO of Solid State Plc, said: "The acquisition of Q-Par Antennas secures a valuable distribution channel and gives the group an opportunity to further invest in the medium term growth opportunity in the US markets.
"As Solid State broadens its footprint and product offering in the US market, locally recognised and accredited sales channels enable scale, particularly into niche markets."
