Solid State PLC (AIM:SOLI) has acquired ferrite and magnetic products maker Gateway Electronic Components for an initial £1.4 million.
Gateway’s range of goods will complement Solid State’s own computing products, the company said in a statement, with the firm joining its Solsta components division.
“Gateway broadens our product line within sectors that are already core to our footprint, whilst equally giving Solid State an additional aligned client base,” Solsta managing director John Macmichael commented.
He added Gateway’s machined ferrite products, which can be used in the likes of computing products and power generation, would help drive higher-margin own-brand growth.
Solid State said £1.4 million would be paid initially, before a further £0.6 million on completion.
“The cultural fit has always been a very important element of our merger and acquisition strategy, so it is pleasing to join forces with a like-minded team,” Macmichael added.