Advanced Power Components plc (APC), an AIM-listed distributor and manufacturers’ representative of electronic components, has purchased Lincolnshire-based business Novacom Microwave for £1.6 million in cash.

Advanced Power Components plc (APC), an AIM-listed distributor and manufacturers’ representative of electronic components, has purchased Lincolnshire-based business Novacom Microwave for £1.6 million in cash.

The consideration comprises £400,000 for the estimated net assets and £700,000 goodwill. Further payments of up to £500,000 will be made based on the pre-tax profit performance of Novacom during the 12 months following completion.

Novacom is a distributor and manufacturers’ representative for radio frequency and microwave frequency electronic components for the defence and communications markets, and employs a similar business model to that of APC.

The acquisition will result in design and cross-selling synergies from the combined product ranges.

APC chief executive Mark Robinson says: “The ‘Design In’ strategy common to both businesses has helped maintain margins during what has been a difficult period for the electronics distribution industry and we look forward to reporting on the continued growth of the company during the second half of our financial year.”

In 2007, Novacom generated revenues of £2.3 million, with net profit before tax of £220,000.