© andreypopov dreamstime.com Electronics Production | August 28, 2019
Efore to sell its telecom operations to Chinese Kexin
Back in late July, the board of directors of Efore accepted an offer made by Shenzhen Kexin Communication Technologies Co. Ltd to acquire the fFinnish company’s Telecommunications business.
By accepting the offer Efore discontinues ongoing Joint Venture negotiations with another Chinese power supply partner. The acquisition covers the entire Efore Telecommunications business including current product portfolio and Efore brand and name. Following the acquisition 73 Efore employees in Finland, China and Sweden will transfer to to the buyer. The purchase price on a cash and debt free basis (Enterprise Value) is EUR 6,0 million and the estimated purchase price for the shares is EUR 3,5 million. The acquisition is expected to close during the second half of this year. However, the acquisition is conditional to – among other things – the completion of moving all Efore Telecom business to Telecom subgroup, Kexin shareholder meeting acceptance and receiving all required authority approvals. Efore says that the Telecommunication net sales in 2018 was EUR 18,7 million and result negative. “During the last few years, Efore Telecommunications business has been challenging despite of employee’s strong competences, solid experience and long customer relationships. This deal will be very good for both the employees, customers, subcontractors, buyer’s and seller’s point of view,” explains Vesa Leino, President and CEO of Efore, in a press release. Founded in 2001, Shenzhen Kexin Communication Technologies is a technology company that supplies technology for 5G mobile networks, IoT and data centres.