Concurrent Technologies buys Phillips Aerospace form $3.38m

6th Sep 2023 14:19

(Sharecast News) - Concurrent Technologies announced the successful acquisition of Phillips Aerospace on Wednesday, in a deal valued at $3.38m.

The AIM-traded firm said it would bolster its existing capabilities, and aligned with its strategic expansion into the US manufacturing sector, and its greater focus on the systems market.

It said the acquisition was carried out with a cash consideration of around $1.88m (£1.47m), and the issue of 1,807,686 new shares.

Concurrent specialises in embedded computer solutions for critical applications, including those in defence, medical, and industrial sectors.

The acquisition would enhance its ability to design and manufacture rugged systems that make use of its existing Plug-In-Cards, the board explained.

It said the rugged systems market, largely used in extreme or hazardous environments, was valued at $2.3bn in 2022 and was projected to grow at a compounded annual growth rate of 14.9% to around $6.9bn by 2033.

The sub-sector focussed on defence was estimated to be $262.9m in 2020, and was expected to grow at a compounded annual growth rate of 10%.

Phillips Aerospace would bring additional expertise and capabilities to the firm, especially in the realm of rugged systems solutions.

Prior to the acquisition, Phillips Aerospace was primarily engaged in serving the defence sector, while also catering to the medical and industrial markets.

Concurrent clarified that Phillips Aerospace had a machine shop business, which was not included in the acquisition deal.

"I am delighted to complete the acquisition of Phillips Aerospace and look forward to working with our new and highly capable team," said chief executive officer Miles Adcock.

"Phillips Aerospace materially enhances our capabilities in the rugged systems market. As an AS9100C Certified and qualified US-based supplier of systems to customers such as Boeing, Northrop Grumman and Raytheon, we can now further demonstrate the credibility needed to win and deliver systems solutions that complements our existing Plug-In-Card business."

At 1346 BST, shares in Concurrent Technologies were down 0.52% at 72.12p.

Reporting by Josh White for Sharecast.com.