The Stevenage based distributor 2001 Electronic Components has been bought by Solid State plc, the AIM listed supplier of specialist industrial/ruggedised computers, electronic components, antennas, microwave systems and battery power solutions. The deal closed on 31 December 2013.
Valued at approximately £2.4 million, subject to the completion of a net asset value adjustment, it is the biggest acquisition so far for ambitious Solid State plc. The deal will strengthen its product offering and deliver substantial growth opportunities for the Company.

2001 will strengthen Solid State plc’s existing component distribution business and there is minimal overlap in product lines, suppliers or customers. The two companies’ multiple synergetic lines include LEDs, power supplies and displays. Among notable suppliers on the 2001 linecard are Samsung with its LED components and modules, Digi’s Zigbee modules, fast and low power SRAM from Alliance Memory and VLSI Solutions’s digital audio processors.

Solid State Supplies’ managing director, John Macmichael, said: “We have achieved annual compound growth of 22% over the last four years, far outstripping market growth. This acquisition will accelerate the trend and will enable us to extend our value-added business while offering customers a broader range of complementary products and technologies.”

The acquisition of 2K1 was funded by an over-subscribed placing of 1,050,000 new Ordinary Shares with new investors at £2.42 per share. The Group reported a turnover of £31.5m for the year ended 31 March 2013, an operating profit margin of 6.2% before exceptional items of £0.1m, and a gross profit margin of 26.1% over the period.

For the year ended 31 December 2012, 2K1 reported turnover of £6.8m and a profit after tax of £59,000. In its management accounts to 30 September 2013 it had recorded turnover of £5.4m. One division of the 2K1 business, C1 Systems, is not being acquired. The Directors of Solid State plc expect that the acquisition of 2K1 will be earnings enhancing for the Group in FY 2014/2015.


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