SECO buys majority of China’s Qiyang and takes full control of Fannal

SECO will pay EUR 9 million in cash at closing for 60% of Qiyang, plus an earn-out of up to EUR 3 million linked to revenue targets in 2027 and 2028, according to a press release from SECO. The agreement also includes put and call options on the remaining 40%, exercisable from 2029. Qiyang was founded in 2007 and has around 80 employees, more than half of them in R&D. It reported revenue of about EUR 12 million in 2025, with an adjusted EBITDA margin above 10%, and expects sales to grow by around 50% this year. Its customers are mainly in Asia-Pacific, in industrial automation, energy and EV charging, robotics, medical and smart retail.

“This acquisition significantly expands our research and development capabilities in the region and further strengthens our ability to support customers locally,” says Massimo Mauri, CEO of SECO.

SECO has controlled Fannal since 2019 and will now acquire the remaining 45% for EUR 23 million, payable in three tranches by the end of 2027. The price may be adjusted depending on Fannal’s financial performance in 2026, and an additional earn-out of up to EUR 0.5 million is linked to targets for 2027. Fannal had revenue of EUR 27 million in 2025, 41% of it from sales within the group, and an adjusted EBITDA of EUR 7.7 million. According to SECO, the price corresponds to about 5.3 times expected 2026 EBITDA. The minority shareholders will stay on as employees.

SECO will also exercise a call option to buy the 49% stake in SECO Asia held by the Italian state-backed company Simest, for about EUR 3.4 million, as part of simplifying its corporate structure in the region.

Both Hangzhou deals are subject to customary conditions, and SECO has not given a date for closing.