DGAP-News: KATEK SE / Key word(s): Letter of Intent/Mergers & Acquisitions
KATEK plans acquisition of SigmaPoint
KATEK intends to acquire SigmaPoint Technologies Inc., one of Canada’s leading suppliers of high-value electronics manufacturing services. This expands KATEK’s presence in the industry to include Homeland Security & Defense and strengthens the offering for KATEK’s European customers in North America as well.
Munich, April 6, 2022 – KATEK SE has signed a comprehensive, exclusive term sheet with SigmaPoint Technologies Inc. in Cornwall, Canada, for the acquisition of all shares in the Canadian company. The negotiation of the associated share purchase agreement should be concluded shortly with the closing planned for the end of Q2 at the latest. The transaction is subject to the necessary official approvals, such as the competition authorities.
SigmaPoint is one of the leading electronics service providers in Canada and is known for its decades of high quality production based on strict lean principles in the field of high-value electronics. In addition to the medical, industrial controls, embedded electronics and IoT sectors, SigmaPoint is opening new markets for KATEK in the homeland security and defense sectors.
In the medium term, SigmaPoint is planning annual sales of over USD 100 million and is currently benefiting greatly from the reshoring trend in North America, which is being driven by the current disruptions to supply chains due to the pandemic and by economic and geopolitical tensions. SigmaPoint currently employs 280 people.
SigmaPoint’s largest customer in North America is already one of KATEK’s top 5 customers in Europe. Among other things, this will lead to significant advantages for both companies on the procurement market.
The investment is part of KATEK’s strategy of opening additional markets for HVE (high-value electronics) in addition to its strong presence in Europe. Rainer Koppitz, CEO of KATEK: “As the number three electronics service provider in Europe, we are making good on the promise to our European customers of a presence on the North American continent.” At the same time KATEK is opening their first Asian plant in Malaysia, the gap in North America will be closed and the ‘local-for-local’ approach now will be offered on another continent.
Rainer Koppitz continues: “The very good match between corporate culture and values was also decisive. This will make it much easier to leverage the large existing synergies in the areas of sales, supply chain and lean manufacturing. CEO Dan Bergeron and the full management team will continue to lead SigmaPoint after the acquisition.”
Daniel Bergeron, CEO SigmaPoint: “We are looking forward to the partnership with KATEK Group. Our two companies have a lot in common, most notably our work culture, customer-centric values and lean principles.”
He sees the merger as an important milestone for SigmaPoint that few companies ever achieve. Becoming the first KATEK Group company in the American market is a testament to the outstanding team and rapidly scaling business.
“I am extremely proud of our 280 employees and I am incredibly excited about the potential that will open up for our customers, the team and the local community in the years to come. Our partnership represents an extension and strengthening of our supply chain, design support, rapid prototyping and global distribution services.”
Note: Today (April 6, 2022) from 1:00 p.m. CEST there will be a conference call/webcast on the 2021 business results including an outlook for the current year for analysts, institutional investors and press representatives (1:00 p.m. to 1:30 p.m. CEST in German, from 1:30 p.m CEST in English). In order to attend the conference, participants are asked to register via this link. Diamond Pass Registration (choruscall.de)
The KATEK Group is a leading European electronics company offering hardware and software development, prototyping and manufacturing, and related services in the market for high-end electronics or electronics services. The KATEK Group currently employs over 2,800 people in Germany and Eastern Europe. CEO & Co-Founder is Rainer Koppitz and CFO is Dr. Johannes Fues. For more information about KATEK, please visit https://katek-group.com/.
KATEK press contact
Statements contained herein may constitute “forward-looking statements”. Forward-looking statements are identified by words such as “may,” “will,” “should,” “plans,” “expects,” “anticipates,” “estimates,” “believes,” “intends,” “has in mind,” “targets” or their negative form or equivalent variations and comparable terminology.
Forward-looking statements are based on current expectations and involve a number of known and unknown risks, uncertainties and other factors that may cause the actual results, levels of utilization, performance or achievements of the Group or the industries in which it operates to be materially different from those expressed or implied by such statements. Undue reliance should not be placed on forward-looking statements. The Group will not update or revise any forward-looking statements contained herein as a result of new information, future events or otherwise.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1321359|
|End of News||DGAP News Service|