The Katek Group is a European electronics company that offers high-quality electronics and products in the fields of solar energy and emobility. With more than 3,200 employees, Katek expects sales revenues of over EUR 750 million in the 2023 financial year and has locations in Europe, Asia and North America. Control electronics for photovoltaic systems and the rapidly growing area of intelligent charging solutions for electric vehicles are an important part of the product range. With its subsidiaries, Katek is one of the pioneers in renewable energy technology.

Expansion of the IoT and software focus

The aim of the acquisition is to expand Kontron 's offering with intelligent solutions for renewable energies and other industries. To this end, Katek's products are to be upgraded with Kontron's software expertise and IoT connectivity. This is expected to improve Katek's gross margin by around 5% in the medium term. Based on the Kontron operating system (K-OS), the products will become much more secure, they will have firewall functionality, can be connected to complex grids and can also be maintained remotely. The aim is to transform Katek solutions into the IoT world as quickly as possible. Additional synergy effects will arise both from the complementary product portfolio and from the global market coverage. The merger expands Kontron's "Software + Solutions" segment to include the "GreenTec" division.

Hannes Niederhauser, CEO of Kontron AG: "With the acquisition of Katek SE, we are systematically expanding our presence in the fast-growing Clean Energy Solutions segment and also strengthening Kontron's Aerospace division with the Katek subsidiary NexTek. The clean energy sector holds considerable potential for the future. Upgrading with Kontron Software will increase gross margins by around 5% in the medium term and thus also significantly increase profitability at Katek."

Mandatory offer planned

Kontron AG has agreed the acquisition of around 60 % of the shares in the listed company Katek SE. The purchase price per share is EUR 15.00 for the total of 8,587,138 shares. Subject to the conditions precedent (antitrust law), the transaction is expected to be completed by March 2024.

Completion of the share purchase agreement is still subject to conditions precedent, in particular the granting of the necessary antitrust approvals, and is expected by March 2024. Following the completion of the acquisition of the shares and the acquisition of control over Katek SE, Kontron Acquisition GmbH will publish a mandatory offer to the shareholders of Katek SE in accordance with the provisions of the German Securities Acquisition and Takeover Act.

After obtaining control, Kontron Acquisition GmbH aims to delist Katek SE from the Regulated Market of the Frankfurt Stock Exchange, so that it is planned to structure the mandatory offer simultaneously as a delisting tender offer. Kontron Acquisition GmbH is currently examining together with Bafin whether own shares of the listed Kontron AG, which were acquired through previous share buyback programs, can also be offered as a voluntary alternative consideration as part of the offer. Following a delisting, it is planned that the Management Board and Supervisory Board of Katek will resign from office. It is also planned that Dr. Johannes Fues, currently a member of the Management Board of Katek SE, will join the Management Board of Kontron as Chief Operating Officer (COO) with responsibility for GreenTec.

Kontron forecast for 2024 and 2025 increased

With the planned acquisition of Katek, Kontron is completing the M&A strategy announced in 2022 following the sale of the IT division for the time being. Following four completed acquisitions in 2023, this announcement is the largest transaction in the company's history and is expected to contribute significantly to the Group's growth and the expansion of its position as a leading IoT provider.

Assuming timely approval by the relevant authorities, Kontron is therefore raising the Group's outlook for the full year 2024. Including the acquired Katek business, consolidated revenue of at least EUR 1.9 billion (depending on the date of consolidation) and net income of around EUR 100 million are now expected.

Hannes Niederhauser continues: "The acquisition of Katek is a real game changer for Kontron. It takes us into a new dimension in every respect. With around 8,000 employees and cumulative estimated sales of around EUR 1.9 billion, Kontron is reaching a new size in the market. Added to this is the expertise gained in the future market of renewable energy. Accordingly, we can already raise our recently issued forecast for the 2024 financial year at the start of the year. With the increased technological upgrade of Katek products, we expect Kontron's net earnings to increase significantly in the medium term."