REG - Concurrent Tech. - Acquisition of Phillips Aerospace

Concurrent TechnologiesAnnouncement

06/09/2023 07:00

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RNS Number : 4750L  Concurrent Technologies PLC  06 September 2023

6 September 2023

 

Concurrent Technologies Plc

("Concurrent Technologies" or the "Company")

 

Concurrent Technologies acquires Phillips Machine & Welding Company, Inc
("Phillips Aerospace")

 

Concurrent Technologies, (AIM: CNC) a world-leading specialist in the design
and manufacture of high-end embedded computer solutions for critical
applications, announces that it has completed the acquisition of Phillips
Aerospace (the "Acquisition"), a designer and manufacturer of rugged systems
solutions predominantly serving the defence sector but with capabilities and
customers in both the medical and industrial sectors.

 

Concurrent Technologies has acquired Phillips Aerospace for cash consideration
of approximately US$1.875 million (approx. £1.47 million) and the issue of
1,807,686 new Ordinary Shares in the Company ("Consideration Shares") to
satisfy a total consideration of US$3.375m.  The Acquisition supports the
Company's strategic goals of adding US based manufacturing to its existing
capabilities whilst continuing to a greater focus on the systems market in
response to customer demand.

 

The Acquisition significantly enhances the Company's capability to design and
manufacture rugged systems utilising its existing Plug-In-Cards. Concurrent
Technologies' management team believes that the acquisition of Phillips
Aerospace is an ideal opportunity at this stage of the Company's development
in the rugged systems market, which was valued at c.$2.3 billion in 2022 and
is projected to grow at a compounded annual growth rate of 14.9 per cent to
c.$6.9 billion by 2033. The addressable market for rugged systems in the
defence sector alone was US$262.9m in 2020, with an anticipated CAGR of 10%.

 

For the avoidance of doubt, Phillips Aerospace also has a machine shop
business which is not subject to the Acquisition and has been transferred out
of Phillips Aerospace prior to the Acquisition completing.

 

Total Voting Rights

 

The Company has applied for admission of the Consideration Shares pursuant to
the Fundraising to trading on AIM ("Admission"). Admission will occur at or
around 8.00 a.m. on 7 September 2023. On Admission, the Company will have
86,169,236 Ordinary Shares in issue, of which 531,522 Ordinary Shares are held
in treasury. Therefore, the figure of 85,637,714 Ordinary Shares may be used
by shareholders as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a change to
their interest in the Company under the FCA's Disclosure Guidance and
Transparency Rules.

 

Miles Adcock, CEO of Concurrent Technologies, commented: "I am delighted to
complete the acquisition of Phillips Aerospace and look forward to working
with our new and highly capable team.   Phillips Aerospace materially
enhances our capabilities in the rugged systems market.  As an AS9100C
Certified and qualified USA based supplier of systems to customers such as
Boeing, Northrop Grumman and Raytheon, we can now further demonstrate the
credibility needed to win and deliver Systems solutions that complements our
existing Plug-In-Card business."

 

Brent Salgat, President of Concurrent Technologies Inc, commented: "We already
have a track record of working with Phillips Aerospace on a number of projects
and I am looking forward to working much more closely with them now the
acquisition has closed. We have very complementary capabilities and our
worldwide sales and marketing teams will leverage Phillips Aerospace to win
more rugged systems business."

 

 

Enquiries:

 

 Concurrent Technologies Plc
 Miles Adcock, CEO

                              +44 (0)1206 752626
 Kim Garrod, CFO

 Newgate (Financial PR)         concurrent@secnewgate.co.uk
 Bob Huxford

                              +44 (0)20 3757 6880
 Alice Cho

 Matthew Elliott

 Cenkos Securities Plc (NOMAD)  +44 (0)131 220 9771
 Neil McDonald

                              +44 (0)131 220 9772
 Peter Lynch

 

 

 

Note to Editors:

 

About Concurrent Technologies Plc

 

Concurrent Technologies Plc develops and manufactures high-end embedded Plug
In Cards and Systems for use in a wide range of high performance, long life
cycle applications within the telecommunications, defence, security,
telemetry, scientific and aerospace markets, including applications within
extremely harsh environments. The processor products feature Intel(®)
processors, including the latest  generation embedded Intel(®) Core™
processors, Intel(®) Xeon(®) and Intel Atom™ processors.  The products
are designed to be compliant with industry specifications and support many of
today's leading embedded Operating Systems.  The products are sold
world-wide.

 

For more information on Concurrent Technologies Plc and its products please
visit www.gocct.com (http://www.gocct.com) .

 

All trademarks, registered trademarks and trade names used in this
announcement are the property of their respective owners.

 

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