The company is highly profitable; its EBIT valuation is significantly below that of Kontron. Kontron anticipates that both new subsidiaries will make an annual revenue of USD 30 million. Kontron intends to integrate AP Labs with its North American Kontron headquarters, which is also based in San Diego. AP Parpro Inc. also forms part of the corporate group, which operates cost-efficient production capacities in Mexico. According to Kontron CEO, Ulrich Gehrmann, the strategic acquisition creates benefits in varied ways: the US Defense Department's official accreditation of AP Labs strengthens its regional presence on the high-margin US security market, and AP Labs' complimentary system product line perfectly supplements the board product line of Kontron's French subsidiary (formerly Thales Computers SA) in the security area. With the purchase, Kontron intends to further expand its position as one of the world's leading providers of sophisticated complete solutions, thereby consistently pursuing its new strategy of concentrating on high-margin core embedded systems.