Concurrent Technologies PLC on Wednesday said it has entered into a conditional agreement to buy Phillips Machine & Welding Co Inc for $3.4 million.

To finance the acquisition, the Essex, England-based designer and manufacturer of computer boards said it has conditionally raised £6.5 million.

Prior to completion of the acquisition, the machine shop division of Phillips Machine will be transferred out of the business and, as a result, Concurrent Technologies will own the Aerospace and Military division.

Concurrent Technologies said Phillips Machine will progress the company’s strategic ambitions in the Systems market. It described the Systems market as ‘a market comprising of computer systems designed to operate in harsh and demanding environments typically including military, aerospace and industrial uses.’ It anticipates it to be valued at about $6.9 billion by 2033.

‘The nature of the Systems market provides a significant opportunity for future growth for Concurrent Technologies, and Stryker holds aerospace industry standard accreditation which is crucial in order to successfully capture the identified opportunities,’ Concurrent added.

Concurrent also said that, primarily to finance the acquisition, the company has conditionally raised total gross proceeds of £6.5 million through a conditional placing of 10.0 million new shares priced at 65 pence each.

The issue price represents a discount of 11% to the closing price on Tuesday of 73p per share. Concurrent shares were down 4.5% at 69.74p in London on Wednesday morning.

In addition to the placing, Concurrent proposed a £300,000 retail offer of shares at the issue price.

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