Interlink Electronics Eyes $100M Revenue With Sensor Roll-Up Strategy

Interlink Electronics NASDAQ: LINK is pursuing a roll-up strategy in sensors, printed electronics and engineered solutions, with Chairman, President and CEO Steve Bronson outlining plans to expand through acquisitions, cross-selling and internal integration.

Speaking at an investor presentation, Bronson described the company as a vertically integrated provider of sensor-related technologies, handling prototype development, design and manufacturing internally. He said Interlink’s customer base ranges from Fortune 500 companies to high-growth technology companies and that its portfolio includes force-sensing resistors, gas and air-quality sensors, membrane keypads, smart textiles and other printed-electronics products.

Bronson said the company holds 49 patents, with 14 additional patents pending, and operates from headquarters in Fremont, California, with operations in China, Hong Kong, Japan, Scotland, England and the United States.

Sensor Portfolio and Customer Applications

Founded in 1985, Interlink invented force-sensing resistors, a technology designed to detect physical force or pressure. Bronson said the technology can operate in harsh environments, including when a user is wearing gloves, when liquid is present and across a broad temperature range.

He said Interlink’s force-sensing technology is used in Panasonic’s fully rugged Toughbook models through its VersaPad touchpad solution. Bronson also cited a prior program involving Tesla’s Model S door handles, where Interlink developed a piezo-based sensing solution after Tesla’s initial force-sensing approach did not work in the application. He said Tesla used the resulting solution for about five and a half years.

Other applications discussed included radiation oncology equipment made by Varian Medical, now owned by Siemens, where Interlink’s force-sensing element can help identify patient movement during treatment. In wearable technology, Bronson said Conductive Transfers’ printed technology is used in smart shorts designed for women with incontinence issues, with the customer preparing to launch a third-generation product.

The company’s environmental sensing products include a multi-sensing air-quality platform that detects four gases and a methane-sensing solution used around oil and gas drilling sites, according to Bronson.

Acquisition Strategy and Integration

Bronson said Interlink began expanding its acquisition program roughly four or five years ago after completing a turnaround of its legacy force-sensing business. The company acquired affiliated air-quality sensing businesses KWJ Engineering and SPEC Sensors in December 2022, followed three months later by Scotland-based Calman Technology.

Calman added product offerings, revenue and manufacturing diversification, Bronson said. Interlink had previously concentrated force-sensing manufacturing in China, while Calman’s capabilities in Scotland could also be used to produce force-sensing resistors.

In December 2024, Interlink acquired the assets of Conductive Transfers out of administration, the U.K. equivalent of bankruptcy, Bronson said. The company subsequently reassembled the core team and launched operations near Sheffield University’s advanced manufacturing park. Conductive Transfers’ technology includes printed materials that can create heating or sensing characteristics when applied to textiles, he said.

Bronson said integration is central to the company’s strategy and can require near-term investments that reduce profitability. He said the acquired KWJ Engineering and SPEC Sensors businesses had margins in the low teens when acquired and are now operating at 40% margins.

• Interlink plans to market its expanded portfolio at CES in Las Vegas and electronica in Germany.
• The company is centralizing certain back-office and accounting functions across business units.
• Bronson said acquisitions can provide new customers, geographic diversification, technologies and certifications.

Pending Transaction and Financial Targets

Bronson said Interlink generated just under $12 million in revenue last year and adjusted EBITDA of negative $900,000. He said the company returned to profitability in the second quarter and expects a slight organic revenue increase and improvement in adjusted EBITDA.

The company signed a non-binding letter of intent in May to acquire a business that generated $33 million in revenue and more than $4 million in EBITDA last year, Bronson said. He said Interlink was confident the transaction would close within six weeks of the presentation.

Assuming the deal closes, Bronson projected 2025 pro forma revenue of $45 million and adjusted EBITDA of $3.5 million. He also said the company expects pro forma results to exceed $50 million in revenue and approximately $4 million in EBITDA in the following year.

Bronson said the pending target has aerospace and defense-related certifications, including AS9100, ITAR and CMMC, which Interlink does not currently possess. He said those capabilities could help the company participate in aerospace and defense opportunities without building those qualifications internally.

Interlink has funded its prior, smaller acquisitions with cash on hand, Bronson said. For the pending transaction, the company expects to use traditional senior bank debt. He added that the seller is expected to accept a portion of consideration in Interlink stock at a 50% premium to the company’s market price.

Long-Term Objective

Bronson said Interlink’s first major target is reaching $100 million in revenue with “strong profitability,” using both organic growth and acquisitions. He did not provide a specific expected split between acquisition-driven and organic growth.

He said the company is seeking opportunities in a fragmented sensor and printed-electronics market and has sourced its acquisitions without investment bankers. Bronson added that Interlink has historically operated with gross margins above 50%, though margins have recently been closer to 40% to 45% as the company invested in acquired businesses and technology portfolios.

About Interlink Electronics (NASDAQ:LINK)

Interlink Electronics, Inc is a technology company that develops and supplies sensor and human-machine interface solutions. Its portfolio is built around force-sensing resistor technology, which detects changes in pressure or applied force and can be incorporated into electronic controls, switches and touch interfaces.

The company offers standard and customized sensors, touch and control panels, embedded sensing components, and related interface technologies. Its products are designed for applications including industrial equipment, medical devices, automotive systems, consumer electronics, aerospace and defense equipment, and other products requiring user input or pressure detection.

Founded in 1985, Interlink Electronics serves original equipment manufacturers and other customers in North America, Europe and Asia through direct sales and distribution relationships.

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