SDI acquires PRP Optoelectronics

(Sharecast News) - Buy and build group SDI has acquired high performance microLED and LED devices outfit PRP Optoelectronics for a net consideration of £9.3m, marking the firm's first foray into the avionics market.

SDI said on Friday that PRP, which designs a number of essential components for the Eurofighter Typhoon, F-16 and F-22 Raptor aircraft, would extend its footprint into "the resilient and lucrative aerospace and defence sector", including a stable blue-chip customer base and revenues primarily linked to overseas end markets.

For the year ended 31 December, SDI said PRP had delivered revenues of £5.99m, reported unaudited underlying earnings of £1.54m, and showed net assets of £4.43m.

SDI said a cash consideration of £11.3m, which includes £2.8m of acquired net cash, would be paid immediately on completion, while a deferred cash consideration of £800m-900m, subject to working capital completion accounts, will be paid to the sellers after completion. The cash consideration will be funded from SDI's revolving credit facility with HSBC.

As of 1035 GMT, SDI shares were up 3.95% at 84.20p.

Reporting by Iain Gilbert at Sharecast.com

SDI Group