AIM-listed Advance Power Components (APC) has extended its distribution empire with the acquisition of Contech Electronics.
APC has agreed to pay £1m for the Hertfordshire-based company, which is a leading distributor of data input devices, such as specialist keyboards and barcode scanners.
The deal consists of £375,000 for Contech’s net assets, a further £550,000 for completion and goodwill, as well as £75,000 depending on the business' performance over the next three months.
Contech, which produced revenues of £1.26m and £154,000 profit last year, adds a new dimension to APC's electronic components based business.
Mark Robinson, chief executive of APC, said: “The acquisition of Contech will allow APC to maintain its strategy of focussing on highly specialised product areas whilst facilitating a degree of diversification into new technologies and markets.
“We expect that APC’s resources will assist in Contech’s development within a number of specialist sectors leading to a further boost to APC’s overall growth.”
© Crimson Business Ltd. 2008
