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(Alliance News) - discoverIE Group PLC on Tuesday said it acquired Silver Telecom Ltd for GBP21 million.
The Surrey-based maker of customised electronics said the purchase will be funded by its existing debt facilities. An additional earn-out of up to GBP23 million will be paid subject to Silver Telecom's performance, the company said.
The acquisition is expected to be earnings-enhancing, discoverIE said.
Silver Telecom is a Newport, Wales-based power-over-ethernet module manufacturer and designer. For the year ended February 2023, Silver Telecom generated GBP13.5 million in revenue, and a pretax profit of GBP4.4 million.
discoverIE Chief Executive Officer Nick Jeffries said: "The acquisition of Silvertel continues our strategy of building a differentiated, international, growth focused electronics group with strong operating margins. The transaction brings another high quality business with strong alignment to our target markets into discoverIE, which is accretive to both underlying earnings and margins."
Shares in discoverIE were up 2.6% at 822.00 pence each in London on Tuesday morning.
By Sabrina Penty, Alliance News reporter
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