Solid State PLC on Friday announced its acquisition of Q-Par Antennas USA LLC for up to $2.0 million, as part of efforts to broaden its reach in US markets.

The Worcestershire, England-based electrics supplier said the acquisition would provide Solid State with a ‘valuable distribution channel’ in the US, as well as give the company approved supplier status for key US defence & security prime contractors.

Q-Par reported revenue of $2.0 million in its most recent financial year that ended September 30, and pretax profit of $200,000.

The acquisition will be funded by Solid State’s existing cash resources, through an initial $500,000 consideration and then an additional $500,000 paid in the first week of January 2025. A further deferred payment of $500,000 will be paid out over a two-year period, and a final earn-out consideration of $500,000 would be dependent on meeting growth and performance targets.

Chief Executive Officer Gary Marsh said: ‘The acquisition of Q-Par Antennas secures a valuable distribution channel and gives the group an opportunity to further invest in the medium-term growth opportunity in the US markets. As Solid State broadens its footprint and product offering in the US market, locally recognised and accredited sales channels enable scale, particularly into niche markets.’

Shares in Solid State were up 4.4% at 240.00 pence each in London on Friday morning.

Copyright 2024 Alliance News Ltd. All Rights Reserved.