CCTV specialist Quadnetics bolstered its defence business with the £260,000 purchase of a defence electronics manufacturer.
The group, which has its Synectics security technology business in Sheffield, bought Bristol-based Persides Technology Ltd (PTL) to expand its presence in the defence and hazardous environment sector.
Chief executive John Shepherd said: "The acquisition of PTL is a significant step forward in the restructuring and repositioning of our defence activities and opens up new market opportunities for the group."
It will pay up to 260,000 in cash for PTL, which specialises in advanced battlefield electronic monitoring systems and 'ruggedised' hand-held digital video systems for extreme environments.
PTL already works alongside Synectics' defence business, and the group said it has played "an important role" in the development of its latest generation radio frequency detection system, Chili.
The system, due to be launched soon, is a lightweight, low volume and low power consumption scanner for use by soldiers in battle zones to detect threats. Quadnetics said Chili has already attracted international interest.
The group said PTL will "augment Synectics' core intellectual property in the defence market and will enable the group to retain greater margin on sales of Chili". Quadnetics also hopes to boost sales of PTL's video system through its greater financial strength and sales capability. Its shares were yesterday flat at 176p.