e2v technologies plc (e2v), the specialist provider of innovative technology for high performance systems and equipment, today announces the acquisition of LinkÃ¶ping-based Signal Processing (SP) Devices Sweden AB (“SP Devices”), a leader in the design and development of high performance analogue-to-digital processing technologyÂ for up to US$18 million (Â£12 million).
From its core semiconductor component offering for aerospace and defence industries, e2v’s Semiconductor division is continuing to build a signal chain solutions business to accelerate its growth ambitions across key industrial automation, healthcare, communications, safety and discovery end markets.
SP Devices provides high performance sub-system solutions for analogue to digital conversion applications.Â These are used by customers including leading original equipment manufacturers across a number of sectors, including industrial test & measurement, healthcare, communications and science.Â It also brings proven patented technology in software and board level sub-systems and services, which complements and enhances e2v’s broadband data converter business.
SP Devices was established by a team from LinkÃ¶ping University which will continue to drive the business under e2v’s ownership.Â Â In the year to 31 December 2015 SP Devices made sales of approximately US$4.0 million and is expected to grow sales and its profit margin significantly this year. Â The transaction is consistent with e2v’s stated ambition of accelerating growth in Semiconductors, one of its four priority business areas. Â The acquisition is expected to be earnings accretive in the financial year ending 31 March 2017.
The initial cash purchase price is US$14 million (Â£9.5 million)Â withÂ an earn-out of up to a further $4 million (Â£2.7 million) in cash, dependent on revenue growth targets.Â Â The SP Devices’ management team will remain with the business.Â The cash consideration is being funded from e2v’s existing resources.
Commenting on the acquisition e2v’s Group CEO, Steve Blair, said:
“Semiconductors is one of the four priority areas for investment. We believe we can expand the business through developing signal path sub-system solutions for our customers and SP Devices accelerates this strategy, bringing analogue-to-digital conversion capabilities protected by proprietary IP.Â It has a great fit with our Semiconductor broadband data converter business and I am delighted to welcome the SP Devices team to e2v.”