Concurrent Technologies (AIM:CNC) PLC has acquired rugged systems supplier Phillips Machine & Welding Company Inc (Phillips Aerospace), the company announced on Wednesday.
In addition to supplying defence firms, the US-based company also serves the medical and industrial sectors. Concurrent said the addition of Phillips will help it achieve its goal of expanding manufacturing across the Atlantic.
“Phillips Aerospace materially enhances our capabilities in the rugged systems market,” chief executive Miles Adcock said.
“As [a] supplier of systems to customers such as Boeing, Northrop Grumman (NYSE:NOC) and Raytheon, we can now further demonstrate the credibility needed to win and deliver systems solutions.”
The total consideration of the takeover was US$3.74 million, split between a US$1.86 million cash payment and the issue of 1,807,686 new ordinary shares, AIM-listed Concurrent said.
Valued at roughly US$2.3 billion in 2022, the rugged systems market is anticipated to see compound annual growth of 14.9% to around US$6.9 billion in 2033.
“We have very complementary capabilities and our worldwide sales and marketing teams will leverage Phillips Aerospace to win more rugged systems business," Concurrent president Brent Salgat added.