Solid State plc (SSP.L), a renowned supplier specializing in value-added components, has announced its acquisition of Q-Par Antennas USA LLC for a total consideration of up to $2.0 million.
The acquisition agreement specifies an initial payment of $0.5 million to be made upon completion of the deal, followed by another $0.5 million in the first week of January 2025. Additionally, a deferred payment of $0.5 million will be made in cash over the subsequent two-year period. Moreover, there is a potential earn-out component worth another $0.5 million, contingent upon surpassing specific growth and performance objectives.
With this acquisition, Q-Par will become part of Solid State's Systems division. Q-Par specializes in antenna systems and related technologies, primarily serving defense and security sectors. It has been a long-term distribution partner of Steatite Antennas in the UK. For the year ending September 30, Q-Par reported total revenues of $2.0 million.
Solid State has stated that this acquisition enhances its distribution security within the US market and grants it approved supplier status with key US defense and security prime contractors. The acquisition will be financed from the company's current cash reserves.
Gary Marsh, CEO of Solid State, expressed, "Acquiring Q-Par Antennas secures a significant distribution channel and presents the Group with the opportunity to further invest in medium-term growth within the US markets. As Solid State expands its presence and product offerings in the US, locally recognized and accredited sales channels are essential for scaling, especially in niche markets."
