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© rawpixelimages dreamstime.com Electronics Production | August 01, 2016

Mycronic acquires Shenzhen Axxon Automation

Mycronic AB has signed an agreement to acquire 75 percent of Shenzhen Axxon Automation Co.,Ltd (Axxon) for a cash consideration of approximately SEK 430 million.
The acquisition will be financed through own funds. As part of the agreement Mycronic will acquire the remaining shares of the company in two steps – an additional 5 percent will be acquired within this year and the last 20 percent after three years. The purchase price for the last part after three years will be set based on parameters such as growth and earnings, which may include changes compared to the current valuation.

“With the acquisition of Axxon we are taking the next step in our strategy for our SMT business. Overnight we are creating a leading dispensing business globally. Axxon’s technology is complimentary to ours. We see great value in Axxon’s market position in the important SMT market in China, but we also see value in the know-how represented by the people in Axxon.”, says Lena Olving, President and CEO of Mycronic.

"Axxon is very pleased to join Mycronic, we admire Mycronic’s advanced technology. Axxon has enjoyed rapid growth in recent years, and has become a leader in the dispensing equipment industry in China with a high-value customer base in the smart phone and other mobile devices industry. It has a market driven, talented management team and solid technical strength. I believe that under the leadership of Mycronic, Axxon will soon become a global leading brand of dispensing equipment.", says Chen Long, Chairman of Axxon.

Mr Chen remains as shareholder in Axxon.

The acquisition is expected to be finalized by the end of September 2016 following regulatory approvals.

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