DGAP-News

KATEK SE: KATEK plans acquisition of SigmaPoint

DGAP-News: KATEK SE / Key word(s): Letter of Intent/Mergers & Acquisitions KATEK SE: KATEK plans acquisition of SigmaPoint 06.04.2022 / 09:00 The issuer is solely responsible for the content of this announcement. 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.