Business
Acquisition & Placing
Acquisition & Placing.
About this update from Solid State Plc
[{"type":"text","content":"\n \nRNS Number : 1564W Solid State PLC 23 December 2013 \n \n\n23 December 2013\n \nSOLID STATE PLC\n(AIM: SSP)\n \n Acquisition and Placing\n \n \nSolid State plc (\"Solid State\", the \"Group\" or \"the Company\"), the AIM listed supplier of specialist industrial/ruggedised computers, electronic components, antennae, microwave systems and battery power solutions to the electronics market, is pleased to announce an acquisition and placing.\n \nKey Points:\n \n· Acquisition of complementary component distribution business for a consideration of up to £2.4m, subject to a net asset value adjustment\n· Annualised turnover of £7.2m with minimum overlap with existing core business\n· Oversubscribed placing to raise £2.54m\n· New institutional shareholders joining share register\n \nThe Company has agreed terms, subject to contract finalisation, to acquire the entire issued share capital of 2001 Electronic Components Limited (\"2K1\") for an initial cash consideration of £2.0 million with a further payment of up to £400,000, subject to an adjustment of net asset value on completion (the \"Acquisition\"). Completion of the Acquisition is expected to take place on 31 December 2013. \n \nInformation on 2K1\n \n2001 Electronic Components Limited is a niche, focussed distributor of electronic components. Its business is similar to Solid State Supplies, the Group's existing component distribution business. 2K1's business is expected to be very complementary to the business of Solid State Supplies given the shared client-centric approach and the minimal overlap in terms of product lines, suppliers or customers. In addition, the combination will provide increased strength and depth to the Group's product range, facilitating access to larger principals and providing opportunities for greater sales of higher margin own brand products and value added services.\n \nIn its audited results for the year ended 31 December 2012, 2K1 reported turnover of £6.8m, an operating profit before management charge of £0.64m and a profit after tax of £59,000. In its management accounts to 30 September 2013 it had recorded turnover of £5.4m. One division of the 2K1 business...