CHICAGO -- Cobra Electronics Corp. , a manufacturer of mobile communications products, has entered into a definitive agreement to acquire Performance Products Ltd., a privately held consumer electronics company based in the U.K. Cobra will pay $21.4 million plus two earnout payments of up to approximately $6.5 million and $9.3 million, respectively, contingent upon Performance Products' operating performance for the year ending March 31, 2007 and the fourteen months ending May 31, 2008.

The acquisition will expand Cobra's product line into the rapidly growing categories of GPS-enabled speed camera detection systems and personal navigation devices.

In a statement, Jim Bazet, Cobra president and chief executive, said, "We are witnessing explosive growth in the use of speed cameras for safety and traffic control throughout Europe and the United States. GPS technology for speed camera detection is legal and, given current trends, we anticipate widespread adoption.

For the fiscal year ended March 31, Performance Products had revenues of $14.8 million and operating income of $1.8 million after adjustment for certain shareholder compensation that will not be paid in the future.