DGAP-News

Kontron AG and Ennoconn Corporation enter Strategic Partnership

DGAP-News: Kontron AG / Key word(s): Strategic Company Decision
Kontron AG and Ennoconn Corporation enter Strategic Partnership

22.01.2016 / 07:40
The issuer is solely responsible for the content of this announcement.

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- Kontron to sell a 49% stake in its Communication business to Ennoconn
for US$ 57.3 million (approximately EUR 52.5 million)

- Transformational strategic milestone, validating Kontron's strategic
decision last year to become a leading provider of combined
hardware/software solutions

- Major boost to Kontron's presence in the APAC region


Augsburg, Germany, January 22, 2016 - Kontron AG, a leading global provider
of Embedded Computer Technology (ECT), and Ennoconn Corporation, a
subsidiary of Foxconn Technology Group in Taipei, Taiwan, a leading
industrial mother board designer and total hardware system solution
provider, have agreed to enter into a strategic partnership in the
Communication segment.

This partnership will be put into effect via Ennoconn taking a 49% stake in
Kontron Canada Inc. (KCI) at a price of US$ 57.3 million (approximately EUR
52.5 million), to be paid to Kontron AG. Kontron AG will retain the
remaining 51% of KCI. This transaction will be subject to regulatory and
corporate approvals, which are expected to be granted during early 2016.

Rolf Schwirz, Kontron's CEO, says: "By entering into this strategic
partnership with Ennoconn, a trusted business partner of Kontron for many
years, we are achieving several strategic and operational objectives: most
importantly, we convert our strategic decision to become a leading provider
of hardware/software solutions into reality. But also, by tapping into the
Ennoconn/Foxconn network, we re-establish a strong and permanent foothold
in the APAC marketplace. Likewise, we intensify cooperation with a company
which can help us lower our material cost as well as our production cost,
thus giving our Communication business a new lease of life. Moreover, we
regain access to production capacity in Asia which will boost our channel
business in particular. And finally, the cash injection enhances our
financial flexibility. This deal is transformational for Kontron - we could
not be more delighted."

By taking this step with Ennoconn, a subsidiary of Foxconn and one of the
largest hardware manufacturers globally, Kontron moves into an excellent
strategic position to take advantage of a rapidly changing technological
world, determined primarily by the brisk development of the Internet of
Things (IoT).

"This strategic alliance with Kontron will create great synergies and