MTI Wireless Edge (AIM:MWE) announced it has agreed to acquire Interspec, a Texas-based distributor of its Mottech water management products, for a maximum consideration of up to approximately $2.6 million.
The AIM-listed communications and radio-frequency technology group said the deal gives it a direct operating platform in what it calls a large and strategically important US market.
Interspec, headquartered in Aubrey, Texas and founded in 1998, specialises in wireless irrigation control systems for public parks, sports fields and community gardens run by city councils, schools and housing associations. It has distributed Mottech products since 2011 and is the largest value-added reseller for Mottech in the US.
For the 12 months to 31 December 2025, Interspec generated unaudited revenue of approximately $2.9 million and profit before tax of approximately $0.4 million, with no borrowings and unaudited net assets of approximately $0.55 million at that date.
MTI's Mottech subsidiary is paying an initial cash consideration of approximately $0.36 million for 100% of Interspec, alongside funding of approximately $1.2 million to support the business's expansion. A further earn-out of between $1.25 million and $2.25 million falls due in July 2028, contingent on Interspec's performance over the 12 months from 1 July 2027 to 30 June 2028.
It added that the initial consideration will be funded from MTI's existing cash resources, which stood at $7.7 million at the end of June after a $3.0 million dividend payment in April.
Interspec's founders will continue to support the business through integration before retiring, while a separate value-added reseller in Florida who has worked with Mottech for 15 years is also retiring, with Mottech set to contract directly with that reseller's customers, expected to add approximately $0.2 million of revenue.
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"Having worked closely with Interspec for many years, we are confident that this will be a successful, and earnings enhancing acquisition," said MTI chief executive Moni Borovitz, adding that the deal is "an important first step in establishing a more direct presence from which we can expand further."
Mottech has been a growth driver for MTI this year, with first-half revenue up 31% and operating profit up 46%, supported by expansion in North America, Italy and the Arabian Gulf. The company said further US growth is likely to come through integrating other resellers within its network alongside organic expansion into new territories.