22nd Dec 2022 09:13
(Alliance News) - discoverIE PLC on Thursday said it has acquired Magnasphere, a US-based company that designs and manufactures magnetic sensors and switches for industrial electronic purposes.
The Surrey-based maker of customised electronics said it will pay out USD22 million on a debt-free, cash-free basis before expenses, funded from existing debt facilities.
The acquisition will be immediately accretive to underlying earnings and underlying operating margin, discoverIE said. Vendor shareholder approvals are expected during the final quarter.
"This acquisition of Magnasphere continues our strategy of building a differentiated, international, growth focused electronics group with strong operating margin," said discoverIE Chief Executive Nick Jefferies.
For 2021, Magnasphere recorded pretax profit of USD1.9 million on revenue of USD6.8 million.
In November, discoverIE said its own revenue rose by 26% to GBP219.7 million for the six months that ended on September 30, from GBP174.3 million the year before. Pretax profit surged to GBP14.8 million from GBP6.4 million, as underlying pretax profit jumped by 46% to GBP23.5 million from GBP16.1 million the year before.
Shares in discoverIE were up 1.1% at 739.00 pence each on Thursday morning in London
By Xindi Wei, Alliance News reporter
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