LONDON (Alliance News) - e2v Technologies PLC said Monday it has acquired Sweden-based Signal Processing Devices Sweden AB for up to USD18 million in cash, as it continues to expect a "satisfactory outcome" for its full year.
In its third quarter to end-December, e2v said it had performed in line with expectations overall. The exception was in its Space Imaging segment, where e2v said it has not seen the speed up in the delivery of programmes it had expected, as they remain "technically challenging".
However, e2v still expects a "satisfactory" outcome for the year, assuming stable foreign exchange and market conditions.
e2v Technologies will pay an initial USD14 million for SP Devices, with an earn-out of up to a further USD4 million in cash dependant on meeting revenue growth targets, both to be funded from e2v's existing resources.
SP Devices made sales of USD4.0 million in 2015, e2v Technologies said, and is expected to grow its sales and profit margins "significantly" in 2016.
"Semiconductors is one of the four priority areas for investment. We believe we can expand the business through developing signal path sub-system solutions for our customers and SP Devices accelerates this strategy, bringing analogue-to-digital conversion capabilities protected by proprietary Intellectual Property. It has a great fit with our Semiconductor broadband data converter business and I am delighted to welcome the SP Devices team to e2v," said Chief Executive Officer Steve Blair in a statement.
e2v Technologies will report its results for the year to end-March on May 16.
Shares in e2v Technologies were down 3.0% at 207.00 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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