Technology group Laird has acquired Nextreme Thermal Solutions, a US-based developer of thin-film thermoelectric technologies for one dollar, with potential cash earn-out payments based on a multiple of 0.4 times revenue over a four year period from 2014.
This will be capped at $60m if $150m is achieved.
In 2013, Nextreme is expected to make a loss of $3.0m as the company moves from technology investment to mass production.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Nextreme's products and staff will be integrated into Laird's existing Thermal business unit.
Chief Executive David Lockwood, said: "Nextreme is the next generation in technology for thermoelectrics. It can fundamentally change the way we cool electronics at the most integrated levels while being produced in large volumes. This significant shift in technology will also enable new applications such as energy harvesting.
"Nextreme is an excellent fit with our business growth strategy. Through this acquisition we will combine the most innovative technology with our market presence and ability to scale operations, to deliver added value to our customers and enable us to move into new segments."
The share price grew 2.42% to 241p by 15:42.
NR
-
Is the Office for National Statistics in turmoil?Britain’s statistics authority, the Office for National Statistics, is increasingly unfit for purpose. Why, and what can be done?
-
Saba Capital and Boaz Weinstein respond to investment trustsAs investment trust managers and industry experts accuse Saba of self-motivated opportunism, the hedge fund responds to specific "misleading claims" and sets out its stall
