Midlands-based Sprue Aegis has raised £1 million towards product development and the acquisition of a Chinese smoke alarm component manufacturer.

The designer and marketer of the FireAngel range of smoke alarms, said it had raised the money through the issue of convertible debt to an investment vehicle backed by Coller Capital.

Coller currently owns QSA Global - the Chinese manufacturer of Sprue Aegis products and an acquisition target of the Coventry-based firm.

QSA, which Sprue will have the option to buy in 2008, has a turnover of £5.3 million and is a worldwide supplier of the radioactive isotopes used in ionisation smoke alarms.

Non-binding terms for the acquisition have been agreed, subject to shareholder approval.

Graham Whitworth, chairman and chief executive of Sprue Aegis, said: "Since inception, Sprue Aegis has been seeking to establish itself as a major player in the worldwide safety products market, with a reputation for innovative, technology-driven solutions.

"The pre-launch reaction from consumers, retailers and leading industry contacts alike to our next generation product range led us to conclude that closer integration with QSA was in the vested interests of both companies. "Combining a profitable manufacturer with our patented technology and routes to market will gives us a much higher net worth.

"We are very excited about it."

As part of the deal, Jan Kreminski, chief executive officer of the QSA Global Group, will join the Sprue Aegis board.

Mr Kreminski said: "We look forward to working more closely with Sprue Aegis over the coming years to build a larger, more profitable global enterprise by leveraging the respective strengths of both companies.

"The proposed combination will significantly strengthen Sprue Aegis, providing substantial additional resources and capabilities to exploit their innovative safety products."