Mobix Labs, Inc. ( MOBX ) shares are trading higher after the company disclosed the acquisition of SCP Manufacturing for an undisclosed amount.

SCP Manufacturing is a Nevada-based producer of mission-critical electrical components for aerospace, defense, and commercial applications.

SCP is a key supplier of mission-critical products to Spacecraft Components, which Mobix Labs ( MOBX ) agreed to acquire in November 2024.

SCP’s products enable Spacecraft Components to provide vital components for the U.S. Army’s Patriot Missile defense system, submarines, naval ships, oil rigs, railcars, and major metropolitan transit systems.

The buyout is expected to enhance Mobix Labs’ operational efficiency, gross margins, and market position in high-growth industries.

Fabian Battaglia, CEO of Mobix Labs ( MOBX ), said, “Our agreement to acquire SCP Manufacturing underscores Mobix Labs’ determination to redefine the aerospace and defense landscape. With SCP’s engineering and manufacturing capabilities, and a track record of excellence, Mobix Labs ( MOBX ) gains access to technologies essential for advanced military and commercial systems.”

The company plans to fund the acquisition through a mix of cash and equity with earnout provisions, subject to final due diligence and board approvals. The deal is expected to close in the second quarter of 2025.

This is the company’s second acquisition in 60 days. As of September 30, 2024, the company’s cash balance stood at $0.266 million.

Price Action: MOBX shares are up 19.4% at $1.409 at the last check Wednesday.

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