Acquisition
SDI Group Acquires PRP Optoelectronics for £9.3m
•February 17, 2026
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Why It Matters
The deal gives SDI a foothold in avionics, adding profitable, long‑term revenue streams from blue‑chip defence customers and diversifying its product portfolio.
Key Takeaways
- •Deal totals £11.3 m cash, £0.8‑0.9 m deferred
- •PRP’s micro‑LEDs serve Eurofighter, F‑16, F‑22 programs
- •Revenue £5.99 m, EBIT £1.54 m in FY2025
- •SDI funds purchase via HSBC revolving credit facility
- •Management team stays on, ensuring continuity
Pulse Analysis
SDI Group’s acquisition of PRP Optoelectronics marks a strategic pivot into the aerospace and defence sector, a market where precision illumination technologies are increasingly critical. PRP’s expertise in high‑performance micro‑LEDs, spanning infrared to ultraviolet wavelengths, supports demanding applications such as avionics displays, thermal imaging, and environmental purification. By integrating these capabilities, SDI not only broadens its product suite but also taps into a resilient revenue base anchored by long‑term contracts with programs like the Eurofighter Typhoon and Lockheed Martin’s F‑22 Raptor.
Financially, the transaction is modest in scale—£9.3 million cash plus a small deferred component—yet it is financed through SDI’s existing revolving credit facility with HSBC, preserving liquidity while leveraging its recent accordion option exercise. PRP’s FY 2025 figures, with a 25% EBIT margin, provide immediate earnings accretion and a clear path to cash‑flow generation. The retained management team ensures that the technical know‑how and customer relationships remain intact, mitigating integration risk and sustaining the firm’s strong revenue visibility in overseas markets.
From an industry perspective, the move reflects a broader trend of consolidation among specialist component suppliers seeking scale to meet the growing demand for advanced optoelectronic solutions in defence and aerospace. As platforms become more sensor‑rich and autonomous, the need for compact, high‑efficiency light sources will intensify. SDI’s expanded footprint positions it to capture a larger share of this niche, while also cross‑selling complementary offerings from its existing Graticules Optics and MPB Industries businesses, strengthening its competitive moat in the specialist industrial and scientific sensor arena.
Deal Summary
SDI Group plc announced the acquisition of PRP Optoelectronics Ltd for a total consideration of £11.3 million in cash, plus up to £0.9 million deferred, excluding £2.8 million of net cash. The deal adds micro‑LED and LED array capabilities to SDI’s Industrial & Scientific Sensors division, expanding its presence in the aerospace and defence markets.
Article
Source: Semiconductor Today
SDI buys PRP Optoelectronics for £9.3m
17 February 2026
SDI Group plc (which acquires and develops companies that design and manufacture specialist products for use in lab equipment, industrial & scientific sensors and industrial & scientific products) has acquired PRP Optoelectronics Ltd of Swindon, UK for £9.3 m, excluding £2.8 m of acquired net cash. The total consideration comprises £11.3 m in cash paid on completion; and £0.8–0.9 m of deferred cash, subject to working‑capital completion accounts (to be paid to the sellers after completion).
The cash consideration will be funded from SDI’s revolving credit facility with HSBC UK Bank. As at end‑January, SDI had cash of about £1.1 m, bank debt of £19.4 m and £5.5 m of undrawn bank facility. In addition, it exercised £6 m of its accordion option in early February, with £9 m remaining unexercised.
With 33 staff, PRP designs and manufactures custom high‑performance micro‑LEDs, LED light engines and monolithic LED arrays, delivering precision illumination spanning infrared through to ultraviolet, for applications in the avionics, defence and industrial sectors. With complete in‑house capabilities (from semiconductor wafer processing to final system assembly), PRP can deliver bespoke solutions for demanding applications such as avionics displays, thermal imaging and water and air purification systems. For full‑year 2025, revenue was £5.99 m and EBIT was £1.54 m. Net assets (including cash) is £4.43 m. The firm serves a critical and technical niche, particularly in the aerospace & defence markets, where its products are essential components in programs including the Eurofighter Typhoon, General Dynamics F‑16 and Lockheed Martin F‑22 Raptor. Supported by long‑term agreements, there is said to be long‑term revenue visibility, with a stable, blue‑chip customer base and revenues primarily linked to overseas end‑markets.
PRP’s managing director Kevin Peart and technical director Sam Cox (the majority shareholders) will remain with the business in a full‑time capacity.
PRP will join the SDI Group’s Industrial & Scientific Sensors division, extending SDI’s footprint into the resilient and lucrative aerospace & defence sector.
Also, PRP’s LED micro‑displays for optical systems and UV purification products add a complementary offering to SDI, strengthening its footprint across the specialist end‑markets occupied by both Graticules Optics and MPB Industries.
“The acquisition of PRP is a significant milestone for SDI, marking our entry into the avionics markets. The business boasts a range of products in a very particular niche, which have applications across multiple sectors, including in aviation and on platforms including the General Dynamics F‑16 and Airbus A320 among others,” notes SDI Group’s CEO Stephen Brown. “PRP is a profitable business, with strong revenue visibility and an international customer base which meets our key acquisition criteria.”
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