Acquisition

RNS Number : 5631J

Solid State PLC

01 April 2010

 

SOLID STATE PLC

("Solid State" or the "Company")

Acquisition of Rugged Systems Limited

Solid State a leading supplier of battery products, specialist electronic components and industrial computers is pleased to announce that it has acquired Rugged Systems Ltd ("RSL"), one of Europe's leading suppliers of rugged, mobile computer, display and communications services, for a maximum total consideration of £254,000.

The Board is also pleased to report that the Company's existing businesses have seen an improvement in trading in the last quarter of its fiscal year and overall the second half of the year is expected to be ahead of the first half.  The Board confirms that the preliminary results for the year ended 31 March 2010 will be released in July.

RSL specialises in applications such as test and measurement, command and control, data acquisition, secure data and computing. The RSL product line is specifically designed for tough work environments, providing computers and instruments that are designed to withstand use in extreme and harsh conditions.

Since the acquisition of Steatite Ltd in 2002 and Wordsworth Technology Ltd in 2005 the Company's strategy has been to develop its core businesses in batteries, components and computing.  The addition of the RZ battery business in 2007 and now RSL will help further this goal. The Company will continue to seek further acquisitions in components to enhance its core Solid State Supplies Ltd specialist electronic component business.

The acquisition of RSL is expected to be immediately earnings enhancing excluding integration and transaction costs.

In the year to 31 March 2009, RSL reported turnover of £4.36 million and a profit before tax of £36,000. As at 31 March 2009 Rugged had total assets of £1.42 million.

Terms of the Acquisition

The total consideration paid for RSL comprises an initial cash payment of approximately £203,000 which is being satisfied in cash financed from the Company's existing resources. A further £51,000 will become payable, in cash, upon finalisation of RSL's completions accounts, which is expected to be on 20 May 2010.   Any further payment is dependent on an increase in the value of net assets at completion.

Further information on RSL and its products can be found at its website http://www.rugged-systems.com.

Commenting on the acquisition the Company's Chief Executive, Gary Marsh said:

"I am delighted to announce the acquisition of Rugged Systems. RSL's flagship products are complimentary to our current portfolio and will strengthen the Company's product offering further as we aim to become the UK's leading supplier of rugged computers."

1 April 2010

Enquires:

Gary Marsh                             01892 839310

Chief Executive

Charles Stanley Securities     020 7149 6000

Nominated Adviser

Russell Cook / Carl Holmes

 

END

 

 

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