discoverIE Group PLC, the designer and manufacturer of customised electronics, has announced the acquisition of 2J Antennas Group for £45 million - a deal that will be immediately earnings accretive.
2J, based in Slovakia, specialises in high-performance antennas for industrial electronic connectivity applications.
The company, which operates subsidiaries in the US and UK, has been profitable with operating margins significantly above the group average.
For the year ending 31 December 2022, 2J reported revenues of £15.5 million and a pre-tax profit of £3.8 million.
The acquisition, which will be funded from discoverIE's debt facility, will see 2J integrated into the group's Sensing & Connectivity division, forming a new technology cluster with Antenova, the existing antenna business.
This move aims to accelerate growth in the industrial wireless connectivity market, particularly in sectors like the Industrial internet of things (IIoT), robotics, and artificial intelligence (AI)-controlled systems.
"The acquisition of 2J continues our strategy of building a differentiated, international, growth-focused electronics group with strong operating margins. The transaction brings another high-quality business into discoverIE, which will be accretive to both underlying earnings and margins," said chief executive Nick Jefferies.
"2J is a business that we have known for some time, with a strong product range and engineering capability that is highly complementary to our existing Antenova business.
"By bringing the two businesses together, they will gain access to a greater number of industrial connectivity target customers with a broader product range and wider commercial support functions. We have invested in additional management to scale up the business and achieve operating synergies."