Solid State acquires optoelectronics outfit Pacer
AIM-listed computing and communications products manufacturer Solid State has acquired optoelectronics outfit Pacer Technologies for £3.73m.
Solid State said the acquisition of Pacer, which it funded from existing resources and new facilities with Lloyds Bank, would "significantly" enhance its exposure to the niche medical sector.
Pacer, which focuses on value-added component distribution and custom design, targeting enhanced margin opportunities, reported revenues of £15.2m, and a pre-tax profit of £431,000 in its last trading year. As of 31 March, Pacer had net assets of £1.06m and a net debt of £1.5m.
Chief executive Gary Marsh, said: "Pacer is a company that we have known and admired for many years. Their expertise and product set are complementary to the existing Solid State Group, with the added benefit of enhancing the value added operations and increasing exposure to high growth markets such as the medical sector."
Marshall also noted that Pacer's established US business would provide Solid State with an opportunity to further develop its US activities.
As of 1200 GMT, Solid State shares had picked up 2.18% to 328p.