Business
Acquisition of Phillips Aerospace
Acquisition of Phillips Aerospace.
About this update from Concurrent Technologies Plc
[{"type":"text","content":"\n\n6 September 2023\n \nConcurrent Technologies Plc\n(\"Concurrent Technologies\" or the \"Company\")\n \nConcurrent Technologies acquires Phillips Machine & Welding Company, Inc (\"Phillips Aerospace\")\n \nConcurrent Technologies, (AIM: CNC) a world-leading specialist in the design and manufacture of high-end embedded computer solutions for critical applications, announces that it has completed the acquisition of Phillips Aerospace (the \"Acquisition\"), a designer and manufacturer of rugged systems solutions predominantly serving the defence sector but with capabilities and customers in both the medical and industrial sectors.\n \nConcurrent Technologies has acquired Phillips Aerospace for cash consideration of approximately US$1.875 million (approx. £1.47 million) and the issue of 1,807,686 new Ordinary Shares in the Company (\"Consideration Shares\") to satisfy a total consideration of US$3.375m. The Acquisition supports the Company's strategic goals of adding US based manufacturing to its existing capabilities whilst continuing to a greater focus on the systems market in response to customer demand.\n \nThe Acquisition significantly enhances the Company's capability to design and manufacture rugged systems utilising its existing Plug-In-Cards. Concurrent Technologies' management team believes that the acquisition of Phillips Aerospace is an ideal opportunity at this stage of the Company's development in the rugged systems market, which was valued at c.$2.3 billion in 2022 and is projected to grow at a compounded annual growth rate of 14.9 per cent to c.$6.9 billion by 2033. The addressable market for rugged systems in the defence sector alone was US$262.9m in 2020, with an anticipated CAGR of 10%.\n \nFor the avoidance of doubt, Phillips Aerospace also has a machine shop business which is not subject to the Acquisition and has been transferred out of Phillips Aerospace prior to the Acquisition completing.\n \nTotal Voting Rights\n \nThe Company has applied for admission of the Consideration Shares pursuant to the Fundraising to trading on AIM (\"Admission\"). Admission will occur at or around 8.00 a.m. on 7 September 2023. On Admission, the Company will have 86,169,236 Ordinary Shares in issue, of which 531,522 Ordinary Shares are held in treasury. Therefore, the figure of...