NOTE acquires UK-based STI to expand defence business
Swedish EMS provider NOTE has acquired 100% of the shares in STI Enterprises Holdings Limited, a UK-based manufacturer of electronic solutions for the defence industry.
The acquisition is intended to strengthen NOTE’s position in the Security & Defence segment and expand its presence in the defence market, the company states in a press release.
STI operates two production facilities in Hook and Poynton in the UK and provides services including advanced PCBA, box-build and testing. The company serves customers across multiple defence domains, including air, land, cyber and marine.
STI is expected to generate revenues of around GBP 60 million in 2026 and employs approximately 300 people. Profitability is described as being in line with NOTE’s.
The purchase price amounts to GBP 72.5 million on a cash- and debt-free basis, corresponding to an adjusted EV/EBITDA multiple of around 10x.
"STI is a strategic acquisition for NOTE, the company has a unique position as a leading EMS partner in the UK and complements our existing operations in an exceptional way. Their technological capabilities and strong customer relationships within defence, strengthen our offering and create significant growth opportunities. We look forward to continuing to build a strong European player with long-term sustainable growth," says Johannes Lind-Widestam, President and CEO, NOTE, in the press release.
In connection with the acquisition, NOTE confirms its outlook for full-year 2026. The company expects STI to contribute revenues of approximately SEK 550–600 million during the remainder of the year.
For the first quarter, NOTE forecasts net sales of SEK 930–960 million, including a contribution of around SEK 20 million from STI.
