discoverIE Group PLC's (LSE:DSCV) £25.9 million acquisition of Germany-based Burster Group, with an additional £10.5 million performance-based earn-out, has drawn praise from analysts at RBC Capital.
The deal bolsters the UK electronics company’s focus on high-margin, specialised markets, investors were told.
Burster is a sensors electronic measurement instruments business. Its revenues were £15 million last year, with the operating margins exceeding discoverIE's long-term target of 15%.
RBC noted that the deal is “immediately earnings accretive,” meaning it will contribute to the UK group's profits from day one.
The investment bank restated its 690p price target.