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(Alliance News) - Concurrent Technologies PLC on Wednesday said it completed the acquisition of Philips Machine & Welding Company Inc, or Phillips Aerospace, for around USD3.4 million.
Concurrent Technologies is an Essex, England-based designer and manufacturer of computer boards, describing Phillips Aerospace as 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".
The deal involves Concurrent paying USD1.9 million in cash plus the issue of 1.8 million new company shares.
Concurrent said the acquisition supports its strategic goals of adding US-based manufacturing to its existing capabilities, alongside a greater focus on the systems market in response to customer demand.
It also "significantly enhances the company's capability to design and manufacture rugged systems utilising its existing plug-in-cards", Concurrent said. It believes that the acquisition is "an ideal opportunity at this stage of the company's development in the rugged systems market".
Concurrent noted that Phillips Aerospace was valued at around USD2.3 billion in 2022 and is projected to grow at a compounded annual growth rate of just under 15% to around USD6.9 billion by 2033.
"As an AS9100C Certified and qualified US-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," said Concurrent Technologies Chief Executive Officer Miles Adcock.
Concurrent Technologies President Brent Salgat 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."
Shares in Concurrent Technologies were down 1.2% to 71.66 pence each in London on Wednesday afternoon.
By Greg Rosenvinge, Alliance News reporter
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