Laird acquires Internet of Things product designer

Electronic components group Laird has purchased a US-based product designer specialising in the Internet of Things, funded using $55m (£36.4m) of existing debt.

The acquisition of the Cedarburg, Wisconsin-based LS Research (LSR) is expected to enhance group earnings in the first full year of ownership, the FTSE 250 company said.

LSR, which generated revenue of $21.6m in the calendar 2014 at comparable margins to the Laird wireless businesses, is a wireless product designer and developer with a suite of embedded radio frequency products and services for the wireless market.

Its business is split into three areas: RF design services to enable Enterprise Internet of Things (EIoT) connectivity applications, RF products including certified wireless modules and antennas, and Electro-Magnetic Conductivity (EMC) testing to international certification standards.

LSR provides products and services into the commercial and light industrial markets, expanding Laird's reach into these sectors.

"LSR will be a strategic and complementary fit with our existing M2M business," Laird said.

"This acquisition adds new capabilities in embedded wireless solutions and services to Laird, provides us with new routes to market for our own products, and most importantly, extends our reach, presence and capabilities in the EIoT markets in which Laird is making significant strategic investment."

Laird also highlighted that the acquisition added new services in the form of upstream wireless connectivity design capabilities and EMC testing facilities that can be used internally, as well as continuing to be offered to external customers.

Shares in Laird rose initially before falling 1.1% to 339.8p by 0955 GMT on Tuesday.