KATEK plans to acquire of Canadian EMS provider
Germany's KATEK says that it intends to acquire Canadian EMS provider SigmaPoint Technologies – a deal that will open new markets for KATEK in the homeland security and defense sectors.
KATEK SE has signed an exclusive term sheet with SigmaPoint Technologies in Cornwall, Canada, for the acquisition of all shares in the Canadian company. The German company states in a press release that the negotiation of the share purchase agreement should soon be concluded – and that the company plans to close the deal at the end of Q2 at the latest.
SigmaPoint is mainly known as a supplier of high-value electronics manufacturing services. In addition to the medical, industrial controls, embedded electronics and IoT sectors, SigmaPoint will open new markets for KATEK in the homeland security and defense sectors. The Canadian company currently employs 280 people
In the medium term, SigmaPoint is planning annual sales of over USD 100 million and is currently benefiting greatly from the re-shoring trend in North America – driven by current disruptions to the supply chains due.
The investment is part of KATEK's strategy of opening additional markets for high-value electronics, in addition to its presence in Europe.
”As the number three electronics service provider in Europe, we are making good on the promise to our European customers of a presence on the North American continent,” says Rainer Koppitz, CEO of KATEK in the press release.
The German company is currently opening their first Asian plant in Malaysia, and with the addition of SigmaPoint the gap in North America will be closed and the KATEK's ‘local-for-local’ approach can be offered in yet another continent.
“The very good match between corporate culture and values was also decisive. This will make it much easier to leverage the large existing synergies in the areas of sales, supply chain and lean manufacturing. CEO Dan Bergeron and the full management team will continue to lead SigmaPoint after the acquisition,” Rainer Koppitz continues, in the press release.