Solid State completes acquisition of LA-based Custom Power

The AIM-traded firm said the Los Angeles-based Custom Power provides battery systems and energy solutions.

Under the previously-agreed terms, Solid State acquired the entire equity interest in Custom Power for a maximum consideration of $45m on a debt-free, cash-free and normalised working capital basis.

Initial cash consideration of $30m, less a non-refundable deposit of $1m already paid, was payable in cash on completion.

Deferred consideration of $10m would be payable in two equal tranches at six and 12 months after completion.

Further earn-out consideration of up to $5m, subject to a revenue performance target, would be payable in cash.

“We are delighted to have completed the transformational acquisition of Custom Power, which represents a step-change in our power business,” said Solid State chief executive officer Gary Marsh.

“The newfound scale and increasingly international offering open up opportunities in specialist and growth markets driven by decarbonisation and the drive for cordless power.

“We look forward to integrating Custom Power and welcoming our new colleagues to the Solid State group.”

At 1207 BST, shares in Solid State were down 0.21% at 1,122.6p.

Reporting by Josh White at Sharecast.com.