APC Technology Regulatory News (APC)

15 Apr 2008 07:00

Advanced Power Components PLC15 April 2008 Date: 15 April 2008On behalf of: Advanced Power Components plc ("APC" or the "Group")Embargoed until: 0700hrs Advanced Power ComponentsAcquisition of Novacom Microwave Ltd Advanced Power Components plc (AIM: APC), a specialist distributor andmanufacturers' representative of electronic components, today announces that ithas acquired the entire issued share capital of Novacom Microwave Limited ("Novacom"), a distributor and manufacturers' representative for RF and Microwave frequency electronic components, for a maximum total consideration ofapproximately £1.6 million cash. The consideration comprises approximately £400,000 for the estimated net assets,subject to adjustment for the actual value of the net assets on completion, and£700,000 for goodwill. In addition further payments of up to £500,000 will bemade based on the pre-tax profit performance of Novacom during the 12 monthsfollowing completion. Approximately £600,000 of the fixed consideration will bepaid on completion, with the remainder to be paid in six equal quarterlypayments over a period of 18 months. This acquisition will be earningsenhancing. Novacom operates within a highly specialised sector of the electronics market,complementary to that of APC, focusing on the defence and communicationsmarkets. Novacom has built an excellent reputation in this market sectoroperating a similar business model to APC, utilising a successful 'Design In'approach, following projects from initial design through to production, andproviding customers and suppliers with an effective support capability. In addition, there is some commonality in the customer base that will offerdesign and cross-selling synergies from the combined product ranges. Novacomhas a highly qualified sales team, with a number of individuals having extensiveexperience gained through senior positions at key RF and microwave organisationsover the last 25 years. In Novacom's audited results for the year ended 31 December 2007, the 14 strongLincolnshire based company generated revenue of £2.3 million, with net profitbefore tax of £220,000. Mark Robinson, Chief Executive of Advanced Power Components, commented: "Novacom is an excellent fit with APC's existing businesses. This acquisitionintroduces new products and expertise, broadening our offering to customers andaddressing new specialist markets. The 'Design In' strategy common to bothbusinesses has helped to maintain margins during what has been a difficultperiod for the electronics distribution industry and we look forward toreporting on the continued growth of the Company during the second half of ourfinancial year." - ends - Enquiries: Advanced Power Components plc 01634 290588Mark Robinson, Chief Executive Officerwww.apc-plc.co.uk Seymour Pierce 020 7107 8000David Newton Redleaf Communications 020 7822 0200Samantha Robbins / Anna Dunkin / Henry Columbine apc@redleafpr.com Notes to Editors About APC APC plc is a leading specialist distributor of electronic components, comprisingfive areas of activity: Hi-Rel distributes a variety of specialist electronic components intoapplications where component reliability is of paramount importance. Hi-Rel'sfranchised product lines include power semiconductors, power supplies, memory,wound and high voltage components. SBM represents manufacturers of relatively specialist electronic componentsaddressing a commercial and industrial customer base. Products representedinclude power semiconductors, communications magnetic, and connector products,interconnectivity solutions - USB, storage and Firewire audio controllers. Hero has a Specialist team of Product Managers ready to assist with your nextdesign, our key areas include LEDS/LAMPS, Drivers, Wireless devices and modules,Zigbee, specialist Sensors and crystals (plus fast turn around on programming). Go! provides a kitting and materials management service to companies wanting tooutsource non core activities, offering services ranging from materialprocurement to full production management. Displays+ provides dedicated technical and commercial support for a wide rangeof LCD's, Standard, Custom, TFT, ESignage, Character, Graphics, Driver Boards,IC's, Single Board Computers and all related connectivity. This information is provided by RNS The company news service from the London Stock Exchange