LONDON (ShareCast) - (Sharecast News) - Gooch and Housego has acquired Gould Technology for up to $16.4m, strengthening the AIM-listed firm's position in the fused fibre optic technology sector and providing it with enhanced access to strategic US aerospace and defence customers.
G&H will pay an initial $14.4m, with $11.6m funded from a new $40m revolving credit facility and a further $1.4m to be satisfied with the issue of 73,183 new G&H shares.

The group revealed there was also a deferred contingent cash consideration of up to a further $3.4m, based upon the performance of the business between now and 30 September 2019.

G&H said its acquisition of the Baltimore-based fibre optics manufacturer enabled it to take another step towards meeting its strategic objective of further diversification in its core markets, bringing the technology and routes to market required for it to access the US Aerospace and Defence fibre optic market, an area that had previously been largely denied to the company.

Mark Webster, G&H's chief executive, said: "This acquisition enables us to take another step towards diversifying our business, allows G&H access to previously restricted markets, as well as reducing, still further, the company's dependency on what remains a cyclical micro-electronics sector."

As of 1000 BST, G&H shares had inched forward 0.32% to 1,720.50p.

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