SDI Group has announced the acquisition of PRP Optoelectronics Ltd (PRP), a UK manufacturer of high-performance microLEDs and monolithic LED devices for avionics and defence. PRP expands the group’s exposure to the aerospace and defence sectors, and brings additional long-term revenue visibility and higher margins. The net consideration of £9.3m (excluding £2.8m acquired net cash) equates to a 6.0x EBIT multiple, consistent with SDI’s disciplined acquisition criteria. While financing costs leave FY26E neutral, our FY27 forecasts for revenue and fully diluted adjusted EPS increase by 7.8% and 7.4%, respectively.