DiscoverIE acquires Silvertel for £21m in cash
Discoverie Group
705.00p
15:54 23/12/24
DiscoverIE announced the acquisition of Silvertel, a manufacturer of Power-over-Ethernet modules.
Electronic & Electrical Equipment
10,010.93
15:54 23/12/24
FTSE 250
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15:55 23/12/24
FTSE 350
4,459.36
15:55 23/12/24
FTSE All-Share
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15:55 23/12/24
The company said that it would pay £21m in cash on a debt free basis, with a potential earn out of as much as £23m over the next four years.
"The acquisition of Silvertel continues our strategy of building a differentiated, international, growth focused electronics group with strong operating margins," said DiscoverIE's chief executive officer, Nick Jefferies.
"The transaction brings another high quality business with strong alignment to our target markets into DiscoverIE, which is accretive to both underlying earnings and margins."
However, transaction close would require authorities' approval under the UK National Security & Investment Act which was expected to be received later in the third quarter.
As of 1228 BST, shares of DiscoverIE were trading 1.87% higher at 816.0p.