Filtronic looks to expand in Yorkshire

The deal is part of Filtronic's plans to create a high growth wireless business through both organic growth and selective acquisitions.

Filtronic will pay around 11m for Isotek, made up of 4.4m in cash plus 18,550,000 new Filtronic shares.

The acquistion, which is expected to be earnings enhancing by 2012, will increase the group's turnover by around 15m.

Chairman Howard Ford said: "This is a transformational deal for both companies which will be attractive to all stakeholders."

Filtronic, which was spun out of the University of Leeds in the 1970s, has suffered recently as mobile phone operators continue to delay spending on telecoms infrastructure.

The company expects to make a small pre-tax loss this year, compared to analysts' previous hopes of 500,000 profit.

Filtronic recently moved its headquarters from Shipley to Newton Aycliffe in County Durham.