API Electronics Group, Inc. (Hauppauge, NY) announced recently that it has purchased all of the assets of Islip Transformer & Metal Co. Inc. (Westbury, NY), a private company that supplies critical systems and components to the U.S Department of Defense (DoD). The acquisition will strengthen API's position in the defense sector, bringing additional engineering expertise and complementary product lines to the business.

Under the terms of the all cash deal, API purchased Islip's contracts, workforce, test/production equipment, product rights and trade name. Islip has current contracts totaling $882,955 and projected revenues in excess of US$1.5 million for the 2004 calendar year.

"The acquisition of the business of Islip Transformer & Metal enables API to further augment its in-demand catalogue of components and systems for both government and corporate clients," said Tom Mills, president & COO for API Electronics. "The Islip business will be integrated into our API Electronics Inc. subsidiary, and we expect to have operations moved into our technology and manufacturing center in Hauppauge, NY, by the end of April. Revenues generated from the Islip acquisition through May 31st will be reflected in API's fiscal 2004 financials, and we expect this deal to have a positive impact on our results. We further expect that Islip will bring API increased revenue on a long-term basis."

In business for over 50 years, Islip supplies the U.S. government with a wide range of electronic components and systems. Among its contracts with the DoD, Islip has supplied various types of build-to-print electronic modules, multilayer printed circuit board assemblies, flexible cables, I/O boards, radio frequency (RF) and connection cables with multiple wire strands and RF modules, and chassis assemblies. Islip components have been utilized in a variety of defense systems, including military generators, night scopes and missile systems.

Islip also manufactures and supplies the exciter component that works in conjunction with the Deck Status Light System manufactured by API's subsidiary TM Systems. This system provides helicopter pilots and flight deck crew with information about the status of landing areas.

In addition to manufacturing its own line of electronic components and systems, Islip has worked in all phases of contract manufacturing—from supplier chain control, incoming inspection and production to final assembly and testing. Contract services provided by the company include custom design, material procurement, electronic circuit board assembly, electromechanical assemblies, cable harness assemblies, and electrical and environmental testing.

www.apielectronics.com

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