LONDON (Alliance News) - Engineering firm TP Group PLC said Monday it had acquired rugged computer servers firm Westek Technology Ltd for up to GBP3.5 million.
Wiltshire-based Westek provides hard-wearing servers and ancillary equipment to military and industrial customers in the UK, Europe and US. Many of these customers, TP explained, are not currently served by TP.
In 2017, Westek generated GBP200,000 pretax profit on GBP3.5 million in revenue. Over the same period, TP generated GBP597,000 pretax loss on revenue of GBP29.5 million.
"This acquisition complements our existing activities in complex, rugged equipment, yet in a different application area and with different customers," TP Chief Executive Officer Phil Cartmell said. "The integration of Westek into the group will, I believe, add significantly to their outreach and accelerate their growth whilst contributing to the success of TPG."
TP will pay an initial GBP3.0 million in cash for Westek. A further GBP500,000 is payable on delivery of "transition activities" in the 12 months after completion. The acquisition will be funded with existing cash resources.
As part of the deal, Westek directors Harry Hunter and Nick Wilson will remain at the firm and lead operations.
Shares in TP were flat at 6.40 pence on Monday.