APC Technology raises £2.5m as it gobbles up Aspen Electronics

The AIM-traded firm said the acquisition of Aspen, for a net consideration of £2.2m, was to be funded by a combination of part of the proceeds of the placing and subscription, and the issue of 7,407,407 consideration shares, which would be subject to a lock-in.

It described Aspen as a “premium distributor” of electronic components, specialising in radio frequency and microwave components, and test and measurement equipment.

APC said Aspen’s RF and microwave business was complementary to its own, which the board expected would lead to top line synergy opportunities.

The acquisition was expected to be earnings-enhancing in the first full year after completion.

APC said the placing of 26,761,587 ordinary shares and vendor placing of 3,835,341 ordinary shares by Stockdale Securities, and the subscription for 6,966,663 ordinary shares with existing and new institutional and other investors at 6.75p each would raise approximately £2.54m before expenses.

Including the 7,407,407 consideration shares, a total 44,970,998 new ordinary shares were being issued at 6.75p each, for a total value of £3.04m.

Around £0.2m of the proceeds from the subscription would be immediately used to repay loan notes held by a current shareholder, APC explained.

“We are delighted to have been able to complete the acquisition of such a premium-quality, complementary RF and microwave business which has an excellent reputation and which is expected to lead to top line growth opportunities as part of the enlarged APC group,” said chief executive Richard Hodgson.

“APC continues to trade in line with management expectations and we expect this acquisition to be earnings enhancing in its first full financial year.

“Following on from the company's successful acquisition and integration of First Byte Micro, this is a further step in the company's stated aim of consolidation led growth in its components division.”