APC Technology buys First Byte Micro for £1.2m

APC Technology on Thursday said it had completed the acquisition of First Byte Micro, a franchised and independent distributor of electronic components for £1.2m.

FBM sources and supplies a wide range of electronic components from major blue chip manufacturers such as Altera, Seiko Instruments, Texas Instruments, and Cypress, and from others either directly under franchise or from authorised open market and worldwide sources, APC said.

"Approximately 80% of FBM clients provide repeat business. As such, the company has long-lasting client relationships including several up to 20 years in duration.

Pete Greenslade, FBM's co-owner and sales manager, will stay with the business and integrate the APC Locator product line into it.

For the year to end-December 2016, FBM recorded revenues of £1.3m, pre-tax profits of £0.2m and net assets of £0.69m. In 2017, FBM is expected to have seen revenue and profit growth, APC said.

APC will pay £0.7m in cash at completion in FBM, a further £0.27m will come from existing APC cash and debt facilities, with the residual £0.23m paid in a year.

APC chief executive Richard Hodgson said the combination of FBM APC's Locator division "gives us a significant presence in the growing market for the sourcing of hard to find and obsolete electronic components and products".

"This business line allows us to offer a value added solution to our extensive military and aerospace customer base in particular."

"The acquired business will add to the exisiting business which has started fiscal year 2018 well and trades in line with expectations. "