A GROWING technology firm is continuing its expansion after agreeing a £6.5m deal to buy a power company.

Stadium Group, which employs more than 130 staff in Hartlepool, is taking on Stontronics.

Bosses say the move for Stontronics, which makes power supply units, transformers and adaptors, will strengthen Stadium’s technology products division and support its rising presence in Asian markets.

The deal comes as Stadium, known for designing and making vehicle control panels, wireless devices and electronic displays, completes an expansion into China, where it is setting up a centre of excellence to complement its Hartlepool site.

Charlie Peppiatt, Stadium’s chief executive, said the acquisition will give the company a new dimension, while taking advantage of Stontronic’s relationships with Asian suppliers and sales across Europe and North America.

He said: “A clear focus for us is to continue to strengthen and build on the success of our technology products division.

“We have been targeting potential acquisitions that bring a clear value proposition; businesses that complement our existing technologies, increase our exposure to high growth markets, and improve our quality of earnings.

“Stontronics will deliver all of these.”

Mr Peppiatt emphasised Stontronic’s overseas potency, saying its power products are sold to more than 500 customers, with business in the UK focused mainly on industrial equipment and instrumentation markets.

Founded in 1988, the Reading-based company employs about 30 staff and had revenues of nearly £5m for the year to September 30 2014.

Speaking to The Northern Echo earlier this year about its China move, Mr Peppiatt said the era of UK firms moving work to the country simply to cut costs are over, adding companies must be more attentive to customers’ local demand.

He said: “It is about serving the local market because customers want local services; we have moved on significantly from the days of shifting things out to China to save costs.

“Underpinning that and our growth is a core strategy of offering centres of excellence in Hartlepool and Asia.

“We had a site in south China that we took on in 2000, but it’s now a little tired so we exercised our right on a lease option and have moved to a more appropriate base.

“Having centres of excellence in both regions is helping us strengthen the business on both sides of the globe.”

Stadium previously closed a sister plant in Rugby, Warwickshire, moving jobs to Hartlepool, and has spent £1m on machinery.