REG - Solid State PLC - Acquisition of Q-Par Antennas USA

Solid StateAnnouncement

01/11/2024 07:00

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RNS Number : 5754K  Solid State PLC  01 November 2024

 

1 November 2024

 

Solid State plc

("Solid State", the "Group" or the "Company")

Acquisition of Q-Par Antennas USA

 

Solid State plc (AIM: SOLI), the specialist value-added component supplier and
design-in manufacturer of computing, power, and communications products,
announces the acquisition of Q-Par Antennas USA LLC ("Q-Par") for a maximum
consideration of up to $2.0m (the "Acquisition"). Q-Par will join the Systems
division of the Group.

 

Established in 2014, Q-Par is a recognised and highly regarded distribution
name in the provision of antenna systems and related technologies primarily
for defence and security applications.  The business has an existing loyal
client base underpinned by valuable approved supplier status agreements.

 

Financial Performance:

For the twelve month period to 30 September 2024, Q-Par generated total
revenues of $2.0m, albeit, when adjusted for intercompany (Solid State) sales,
third party revenues were $0.4m and profit before tax was $0.2m.

 

Acquisition consideration:

The Acquisition will be funded from the Group's existing cash resources.  An
initial consideration of $0.5m is payable on completion, in cash, with an
additional $0.5m paid in the first week of January 2025. A further deferred
payment of $0.5m will be paid out in cash over a two-year period. Earn-out
consideration of a further $0.5 million may be payable subject to exceeding
certain growth and performance targets.

 

Benefits of the Acquisition:

·      Q-Par is a long-standing distribution partner of Steatite
Antennas in the UK and is a respected and trusted brand in the market.

·      The Acquisition gives the Group security of distribution in the
US market and approved supplier status for key US defence and security Prime
contractors.

·      Builds a platform in the US Antenna market & expands Solid
State's US footprint - providing better access to the world's largest antenna
market.

·      Aids the potential to establish an "on shore" antenna production
capability at our facility in Fountain Valley, California, in the medium term,
driving further opportunity growth in products assembled in the USA and
providing tariff benefits.

·      Strengthens credit status of Q-Par by being part of Solid State
Group.

·      Route to establish Steatite Antenna brand in US as an OEM
manufacturer, sitting behind Q-Par as the distributor.

·      Leverage administration synergies as part of Solid State's US
activities.

·      Important building block for the Group's medium term US growth
strategy.

Commenting on the Acquisition, 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."

 

For further information please contact:

 

 Solid State plc                                            Via Walbrook

 Gary Marsh - Chief Executive

 Peter James - Group Finance Director
 Cavendish Capital Markets Limited                          020 7220 0500

 (Nominated Adviser & Broker)

 Adrian Hadden / Callum Davidson (Corporate Finance)

 Jasper Berry / Tim Redfern (Sales / ECM)
 Walbrook PR (Financial PR)                                 020 7933 8780

 Tom Cooper / Nick Rome / Joe Walker                        0797 122 1972

                                                            solidstate@walbrookpr.com (mailto:solidstate@walbrookpr.com)

 

Analyst Research Reports: For further analyst information and research see the
Solid State plc website: https://solidstateplc.com/research/
(https://urldefense.proofpoint.com/v2/url?u=https-3A__solidstateplc.com_research_&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=05PHl3GHdShYuaCii2fBRpoqaNr9B1d97X09daeosu0&m=JmX-gQVke87P3UDBxQzNglNm9FfzH5yZtIa_SmElSS4&s=ib8r3ul2tCaEvJ39SnR1LT7nCa7gAcRQzgO-kNoyZoM&e=)

 

Notes to Editors:

Solid State plc (AIM: SOLI) is a leading value-added electronics group
supplying industrial and defence markets with durable components, assemblies
and manufactured systems for use in critical applications, with a particular
emphasis on harsh operational environments. Solid State's products are found
around the world, from the ocean floor and into space, ensuring the smooth
operation of systems that augment our everyday lives.

 

The Company has a core focus on industrial and ruggedised computing, battery
power solutions, antennas, secure radio systems, imaging technologies, and
electronic components & displays.

 

Operating through two divisions (Systems and Components) the Group thrives on
complex engineering challenges, often requiring design-in support and
component sourcing. Serving a wide range of industries, with a particular
focus on defence, energy production, aerospace, environmental, oceanographic,
industrial, robotics, medical, life sciences, and transportation, the Solid
State trading brands have become synonymous with quality and reliability. The
Group operates under the brands of Steatite, Solsta, Custom Power, Pacer,
Active Silicon, Gateway and Durakool.

 

Solid State plc is headquartered in Redditch, UK, and employs over 400 people
around the world. The business has seven production facilities in the UK and
two in the USA. In total, including all office locations, the Group operates
from 15 national and international sites.

 

Solid State was established in 1971 and admitted to AIM in June 1996.  The
Group has grown organically and by acquisition - having made four acquisitions
in the last four years.

Take a look at the videos below for more insight into the Solid State Group.

Introduction to Solid State - https://youtu.be/1M_Q_B1mYic
(https://urldefense.proofpoint.com/v2/url?u=https-3A__youtu.be_1M-5FQ-5FB1mYic&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=05PHl3GHdShYuaCii2fBRpoqaNr9B1d97X09daeosu0&m=3dW1DsO04w3fOD5H-7rw_kFgcxacpqn1XcdwanaeIt0GZ7CA-Ex3GbIRbrY8H0Qp&s=At43cSgB_l2_aLDoWAG1btwtdQsj0fGFEOvZuRER61Y&e=)

Why invest in Solid State? - https://youtu.be/ShmTz6005ws
(https://urldefense.proofpoint.com/v2/url?u=https-3A__youtu.be_ShmTz6005ws&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=05PHl3GHdShYuaCii2fBRpoqaNr9B1d97X09daeosu0&m=3dW1DsO04w3fOD5H-7rw_kFgcxacpqn1XcdwanaeIt0GZ7CA-Ex3GbIRbrY8H0Qp&s=BRSABtV1H6lx3GEpH8ZgxTINGT_PRgrBvEbFa-O11Yg&e=)

 

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