TP Group (AIM: TPG), the specialist services and engineering group, is pleased to announce the acquisition of the entire issued share capital of Westek Technology Limited ("Westek") for an initial consideration of £3.0 million, subject to adjustment to reflect Westek's net asset position at completion, with a maximum additional £0.5 million payable on delivery of certain transition activities within 12 months following completion of the acquisition.
The acquisition of Westek will be earnings accretive to the Group for the full financial year ending 31 December 2019, and will be funded from existing cash resources.
Westek is a leading provider of rugged, high performance computer servers and ancillary equipment for military and industrial customers predominantly in the UK, Europe and the United States, many of whom are not currently supplied by TP Group. The business operates from a facility in Wiltshire.
The acquisition of Westek is a strategic addition of proven capability in the design and manufacture of advanced electronic systems, providing specialist high-performance products. This capability also offers vertical integration with the rugged control systems already delivered with TP Group's packaged equipment offerings.
The Westek business will be managed within, and contribute to, the Group's existing Technology and Engineering business stream.
Westek reported revenues of £3.5 million and profit before tax of £0.2 million in the financial year ended 31 December 2017. As at 31 December 2017, Westek had gross assets of £2.3 million.
Harry Hunter and Nick Wilson, both directors within Westek, will remain with the business and continue to lead activities and operations.
""We are delighted to welcome Westek into the Group, continuing our growth in high-technology packaged systems and equipment. "This acquisition complements our existing activities in complex, rugged equipment, yet in a different application area and with different customers. The integration of Westek into the Group will, I believe, add significantly to their outreach and accelerate their growth whilst contributing to the success of TPG. "We are also pleased that the existing directors, Harry and Nick, will stay with the business post-acquisition to work closely with us in successfully delivering a number of current and new projects.""