Filtronic looks to new era after completion

The group, formed in 1977 by University of Leeds Professor David Rhodes, was once a formidable force in the telecoms technology market but shrunk significantly in recent years by selling off businesses. Filtronic, whose point-to-point technology links mobile phone base stations, believes the Isotek deal will be a catalyst for growth. It bought Isotek for 10.7m in cash and shares.

It hopes Isotek will take it back to the heart of the base station market, and expects the deal to increase revenues by 15m by 2012. Isotek is already embedded with major mobile phone operators and manufacturers.

Filtronic, headed by chief executive Hemant Mardia, hopes to tap into demand for mobile phone network upgrades as data-hungry mobile devices lead to "exponential" growth in mobile data.

Isotek has 28 staff, including 18 in Leeds, and was established in its current form in 2006 by former Filtronic employees who left the group when it sold its wireless infrastructure business to Powerwave Technologies for 184m.

Isotek's management includes Alan Needle, the former chief executive of Filtronic's wireless business and Dr Christopher Mobbs, the group's former chief technical officer. Mr Needle is rejoining Filtronic's board as an executive director with immediate effect.

Professor Rhodes will also rejoin as a consultant.