Concurrent Technologies (AIM:CNC) PLC, a specialist in high-end embedded computer solutions, has agreed to acquire Stryker, Phillips Machine & Welding Company's aerospace and military division for £2.64 million.
At the same time, it announced plans to raise up to £6.8 million to fund the deal and bolster its balance sheet.
"The proceeds from the fundraising will enable us to further develop and build on our existing position in the market whilst funding the company in the delivery of our substantial order book," said CEO Miles Adcock.
"Exciting times are ahead with the conditional acquisition of Stryker bringing a depth of talent and capability into Concurrent Technologies (AIM:CNC)."
The stock fell 7.4% to 67.61p in early trade.