Adey Electronics

Finding the right partner to unlock the next stage of growth

Founded in 2011 and based in Bottesford, Nottinghamshire, Adey Electronics provides end-to-end connectivity solutions to organisations operating in demanding industrial environments.

The business supplies a range of specialist products and services, including routers, antennas, device management software and power supplies, supported by a strong reputation for technical expertise and dependable customer service.

Having built a successful business with an established customer base and strong market position, Managing Director Michaela Adey and the wider leadership team were keen to explore the next stage of Adey Electronics’ development.

The shareholders recognised that the business would benefit from joining a larger organisation with the resources and capabilities to support further growth. However, finding the right acquirer was critical. They wanted a partner that could help expand the business while protecting the company’s culture, retaining its skilled employees and maintaining the high level of service its customers had come to expect.

 “Becoming part of Pantek Group gives us an excellent platform for the next stage of our development.”

Lewis Harvey, Head of Technical and Commercial Services, Adey Electronics

Advising on a complex earn-out structure to maximise future value

The shareholders instructed KBS Corporate to identify the right strategic acquirer and advise them throughout the sale process.

Atif Iqbal, Deal Executive at KBS Corporate, led the transaction, working closely with the shareholders to assess prospective buyers and negotiate an outcome that reflected both the current performance of the business and its significant future growth potential.

One of the key components during negotiations was a potentially lucrative new contract that could double Adey Electronics’ turnover within two years.

The initial offer from the preferred acquirer was based on the company’s historic accounts. KBS Corporate recognised that the new contract could materially increase the future value of the business and worked alongside the shareholders to develop a structure that would allow them to benefit from this potential growth.

Following detailed financial analysis, KBS presented two earn-out structures: one based on the contract being secured and another should the contract not be awarded.

This approach enabled both parties to account for the uncertainty surrounding the contract while ensuring the shareholders had the opportunity to realise additional value if the anticipated growth was achieved.

The proposed structure was carefully modelled to ensure the earn-out and associated profit margins were realistic and achievable, ultimately giving both parties greater clarity and confidence in the transaction.

“Great company to work with. Made the process very smooth and kept us informed throughout. Atif and the team were a pleasure to work with.”

Lewis Harvey, Head of Technical and Commercial Services, Adey Electronics

A clear strategic vision identifies the right acquirer

While discussions were held with several interested parties, one acquirer quickly stood out from the others.

Pantek Group demonstrated a clear understanding of what it wanted to achieve with the acquisition and provided a detailed vision for Adey Electronics’ future within the group.

Open and effective communication throughout the process, alongside meetings and visits between both parties, allowed the shareholders and Pantek to build a strong relationship and develop a clear understanding of their shared ambitions.

This gave Michaela and Lewis confidence that Pantek was the right partner to support Adey Electronics’ continued development while allowing the business to expand its reach and capabilities.

The final deal structure was agreed following constructive discussions around the earn-out arrangements, with both parties recognising the benefit of creating a structure that reflected the potential future growth of the business.

Expanding Pantek’s industrial technology capabilities

Joining Pantek Group provides Adey Electronics with access to wider group resources, complementary technical capabilities and opportunities to collaborate with other specialist businesses.

Adey will continue to operate under its existing brand, with day-to-day operations remaining unchanged. This provides continuity for customers, suppliers and employees while allowing the business to benefit from the scale and capabilities of the wider group.

For Pantek, the acquisition strengthens its connectivity expertise and supports its ambition to build an integrated industrial technology platform.

By combining specialist businesses across the group, Pantek can offer customers a broader range of complementary solutions while maintaining the technical expertise and established relationships that have contributed to Adey Electronics’ success.

“This is another step in building a highly capable industrial technology group. Adey Electronics brings deep expertise in connectivity, which is increasingly critical to our customers.

“By combining specialist businesses within the group, we can deliver broader, more integrated solutions while preserving the strengths and relationships that make each company successful.”

John Bailey, Chairman, Pantek Group