LONDON (Alliance News) - APC Technology Group PLC on Friday said it has acquired 100% of Wavelength Electronics Ltd for GBP494,000 in cash.
APC designs and distributes specialist electronic products and components and Wavelength is a premium distributor and electronic component manufacturer representative.
One third of the consideration is to be paid on completion, one third in 12 monthly instalments, and the final balance 12 months from completion.
In 2018, Wavelength's gross profit was GBP472,000. It is expected that Wavelength's adjusted earnings before interest, taxation, depreciation, and amortization - once it is fully integrated into APC - will be "in the region of GBP175,000".
In addition, APC confirmed its trading to date for its financial year to August 31 is in line with management expectations.
"For APC this deal follows the successful acquisitions of First Byte Micro - now APC Locator - and Aspen Electronics in 2018 and positions us as one of the largest electronic distribution businesses in the UK, with unrivalled product, technical and sales experience. Our combined technical sales, marketing and customer-facing teams now total more than 50 staff and will provide our manufacturing partners with enhanced UK coverage to an expanded customer base," said Chief Executive Richard Hodgson.
On Thursday last week, APC said its pretax profit grew in its previous year ended August 2018 to GBP555,000 from GBP166,000 the year before, as revenue increased to GBP17.2 million from GBP15.6 million.
Shares in APC Technology closed down 2.0% Friday at 6.25 pence each.
