Comprehensive M&A data with integrated detailed company information

S&T planning Kontron purchase
Posted on Thursday, 16 February 2017 15:37
German IT systems hardware components manufacturer S&T Deutschland has unveiled the signing of a letter of intent to pick up the balance of Augsburg-headquartered computer modules, boards and systems maker Kontron.

The buyer, which is a subsidiary of Austrian firm S&T, currently owns a 29.9 per cent share of the business.

No financial details of the proposed deal have been disclosed at this time.

However, based on Frankfurt-listed Kontron’s close of EUR 2.70 on 14th February, the last trading day prior to the deal being announced, the transaction can be valued at EUR 105.39 million.

Of the total consideration, 90.0 per cent will be comprised of stock in S&T, while the remainder will take the form of cash.

Kontron said the deal will be evaluated and prepared over the course of the next two months before a final decision is taken at the Annual General Shareholder meetings of both parties.

The target describes itself as a world leader in embedded computer technology and a pioneer in secure Internet of Things software.

It generated revenue of EUR 270.00 million in the opening three quarters of 2016, marking a decline on the EUR 320.40 million generated over the corresponding timeframe in 2015.

Net loss for the period totalled EUR 95.00 million, compared to a net loss of EUR 8.30 million in the first nine months of 2015.

S&T last invested in Kontron in November 2016, when it injected EUR 49.68 million, increasing its stake from 5.1 per cent to 29.9 per cent in the process.

As part of that transaction Warburg Pincus and Triton Advisers exited the business.

S&T’s other recent investments include Linz-headquartered smart energy metres manufacturer Networked Energy Services, in which it bought a stake in February 2016.

© Zephus Ltd