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APC Trade News
Date: 4 June 2008
On behalf of: Advanced Power Components plc ("APC" or the "Group") Embargoed until: 0700hrs
Advanced Power Components
Acquisition of Contech Electronics Ltd
Further to the announcement dated 23 May 2008, Advanced Power Components plc (AIM: APC), a specialist distributor and manufacturers` representative of electronic components, today announces that it has acquired the entire issued share capital of Contech Electronics Limited ("Contech"), a leading distributor of data input devices, for a maximum total consideration of approximately £1.0 million in cash.
The consideration comprises approximately £375,000 for the estimated net assets, subject to adjustment for the actual value of the net assets on completion, and £550,000 for goodwill. In addition, a further payment of up to £75,000 will be made, based on the pre-tax profit performance of Contech during the three months following completion. Approximately £500,000 of the fixed consideration will be paid on completion, with the remainder to be paid in three equal quarterly payments over a period of nine months. This acquisition will be earnings enhancing.
Contech operates within a highly specialised sector of the electronics market, supplying products such as specialist keyboards, barcode scanners, card readers and touch screens to a range of markets including industrial, broadcast and medical. As such, the acquisition diversifies APC`s current areas of business. Contech operates a similar business model to APC, utilising a successful `Design In` approach, following projects from concept through to production, and providing customers and suppliers with an effective support capability.
In Contech`s audited results for the eight months ended 31 March 2008, the seven-strong Hertfordshire based company generated revenue of £1.26 million, with net profit before tax of £154,000.
Mark Robinson, Chief Executive of Advanced Power Components, commented:
"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."
Date: 15 April 2008
On behalf of: Advanced Power Components plc (“APC” or the “Group”)
Embargoed until: 0700hrs
Advanced Power Components Acquisition of Novacom Microwave Ltd
Advanced Power Components plc (AIM: APC), a specialist distributor and manufacturers` representative of electronic components, today announces that it has acquired the entire issued share capital of Novacom Microwave Limited (“Novacom”), a distributor and manufacturers’ representative for RF and Microwave frequency electronic components, for a maximum total consideration of approximately £1.6 million cash.
The consideration comprises approximately £400,000 for the estimated net assets, subject to adjustment for the actual value of the net assets on completion, and £700,000 for goodwill. In addition further payments of up to £500,000 will be made based on the pre-tax profit performance of Novacom during the 12 months following completion. Approximately £600,000 of the fixed consideration will be paid on completion, with the remainder to be paid in six equal quarterly payments over a period of 18 months. This acquisition will be earnings enhancing.
Novacom operates within a highly specialised sector of the electronics market, complementary to that of APC, focusing on the defence and communications markets. Novacom has built an excellent reputation in this market sector operating a similar business model to APC, utilising a successful ‘Design In’ approach, following projects from initial design through to production, and providing customers and suppliers with an effective support capability.
In addition, there is some commonality in the customer base that will offer design and cross-selling synergies from the combined product ranges. Novacom has a highly qualified sales team, with a number of individuals having extensive experience gained through senior positions at key RF and microwave organisations over the last 25 years.
In Novacom’s audited results for the year ended 31 December 2007, the 14 strong Lincolnshire based company generated revenue of £2.3 million, with net profit before tax of £220,000.
Mark Robinson, Chief Executive of Advanced Power Components, commented:
“Novacom is an excellent fit with APC’s existing businesses. This acquisition introduces new products and expertise, broadening our offering to customers and addressing new specialist markets. The ‘Design In’ strategy common to both businesses has helped to maintain margins during what has been a difficult period for the electronics distribution industry and we look forward to reporting on the continued growth of the Company during the second half of our financial year.”
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Date: 25 January 2007
APC signs Nanotron
Advanced Power Components plc, a specialist distributor and manufacturers` representative of electronics components, announces it has recently signed a distribution agreement with Nanotron Technologies GmbH, a leader and innovator in the design, manufacturing and sales of world-class wireless products for demanding applications.
Nanotron provides ready-to-use and custom wireless solutions for a wide range of applications, in particular Real Time Location Systems, Industrial Monitoring and Control, Medical and Government/Security. It has developed a range of radio frequency (RF) products based on a unique and patented Chirp Spread Spectrum (CSS) transmission system.
The CSS technology is inspired by chirp pulses, used in nature by animals, such as dolphins and bats, for location awareness. Its advantage is that pulses can be generated without complex digital circuitry. In comparison with other RF products on the market the Nanotron CSS components offer higher performance, in terms of data rate and distance, and guarantee high robustness, optimal use of the available bandwidth and low energy consumption.
The new product line will be distributed in the [UK and Ireland] by APC’s Hero division, which specialises in the distribution of commercial & industrial electronic components. A specialist team of product managers provides assistance in key areas including standard and custom display solutions, TFTs, display drivers, wireless technologies and full design support from concept to production.
Nanotron recently announced a collaboration and second source partnership with STMicroelectronics, a leading semiconductor manufacturer, to develop complete solutions for the Real Time Location Systems (RTLS) market.
Commenting on the agreement, Mark Robinson, Chief Executive of APC, said:
“We are delighted to have been selected as a distributor of Nanotron’s innovative products. The robustness of this range of wireless communication devices means it is particularly well suited to the industrial applications required by Hero’s customers. This product line is an exciting addition to the range of specialist components offered by the Hero division. ”
APC signs VPT Inc
Advanced Power Components plc, a specialist distributor and manufacturers` representative of electronics components, announces it has signed an exclusive agreement with VPT Inc, an innovative leader in providing power distribution products for military, aerospace, space and other high reliability markets, to distribute its products in the UK and Ireland.
APC`s Hi-Rel division, the UK`s leading distributor of high reliability electronic components to aerospace, defence and specialist industrial customers, will provide VPT`s customers with local sales and technical support. This agreement is expected to have a significant positive impact on turnover in the Hi-Rel division.
VPT`s global customer base includes BAE, Smiths Industries, Thales, Lockhead Martin and Boeing. Its patented products provide power supply solutions for projects such as the GPS satellite system and the Cosmic Dust Experiment on NASA`s Pluto-Kuiper Belt Mission.
Commenting on the agreement, Michael Bosmann, VPT`s Senior Vice President, said:
`APC was chosen as our partner in the UK and Ireland, following an exhaustive selection process, because of their proven expertise in our target markets of aerospace and avionics. VPT has built a reputation for providing reliable power supply products designed for the challenge of demanding environments - on the ground, in the air and beyond. APC`s knowledgeable sales and product management team will be able to provide our customers with the service they expect of VPT and we look forward to working together.`
