By Nina Kienle
Shares in Katek experienced a significant boost after Kontron announced its plans to acquire a 60% stake in the German end-to-end service provider for high-value electronics.
As of 1133 GMT on Thursday, Katek shares had soared by 18%, reaching EUR15.05.
The deal between Kontron, a manufacturer of embedded computer modules, boards, and systems, and Katek is estimated to be valued at around 128.8 million euros ($140.2 million). This will involve the acquisition of 8,587,138 shares at a share price of EUR15.
The shares will be purchased from the current majority shareholder Primepulse through Kontron's wholly-owned subsidiary, Kontron Acquisition.
In 2023, Katek generated an estimated revenue surpassing EUR750 million. It operates across various locations in Europe, Asia, and North America.
Kontron's objective is to expand its range of renewable-energy solutions and enhance Katek's products with the integration of Kontron's software and internet-of-things technology. Consequently, Kontron expects Katek's gross margin to grow by 5% in the medium-term. Consequently, Kontron has decided to terminate its share-buyback program following the announcement of the planned takeover.
With this acquisition, the management and supervisory boards of Katek will step down. Johannes Fues, a current member of Katek's management board, will assume the position of Chief Operating Officer at Kontron.
Additionally, Kontron has increased its outlook for 2024. It now anticipates revenue of at least EUR1.9 billion, a significant increase from the previously forecasted EUR1.40 billion. Furthermore, the company expects a net profit of around EUR100 million compared to the earlier guidance of EUR87 million.
The completion of the transaction is expected by March, as stated by the company.