AN electronics company with a Hartlepool base has acquired a specialist wireless devices manufacturer in a deal announced today.
The Stadium Group, which runs its UK electronics arm from a plant in Brenda Road, has announced the acquisition of United Wireless, a specialist in the design and manufacture of electronics for the machine-to-machine (M2M) wireless sector.
The deal has been announced as an £8m package in cash and shares. Stadium will pay an initial £6m to acquire United,
Stadium’s chief executive Charlie Peppiatt said: “This acquisition establishes Stadium as a credible player in the fast growing market for M2M wireless devices. The successful integration of United will deliver the next step of our strategy to become a design-led electronics business by adding wireless connectivity to our integrated technology offering. I am confident that this acquisition will generate significant value for Stadium shareholders.”
Mr Peppiatt told how the company’s performance was “in line with management expectations” for the first half of this year and significantly ahead of where it was last year.
He added: “We remain confident about prospects for the year.”
United has a strong presence in sectors such as vending, industrial equipment and asset tracking.
It is based in Warrington, Cheshire and employs 40 people.
Global demand for M2M wireless devices is forecast to expand at a 24 per cent annual growth rate over the next five years,
The Stadium plant on Brenda Road is the company’s UK centre of excellence. Stadium posted an adjusted profit before tax of £1.8m for 2013, up £400,000 on the previous year, when it revealed its end-of-year results in March.
Stadium, which employs just under 150 people in Hartlepool, provides electronic technologies to markets including the industrial, marine, aviation, lighting, medical, automotive, and communication sectors.