NCAB acquires US trader for $23.5 million
NCAB Group has acquired Phase 3 Technologies, based in San Jose, California, USA located in the Silicon Valley region.
Phase 3 Technologies is a trader of PCBs conducting business primarily in California. The company focuses on ‘quick turn’ service – smaller batches of PCBs with short delivery times, which is complementary to NCAB’s US portfolio well. Phase 3 Technologies largely sources PCBs from factories in South Korea and the US.
Most sales come from customers in California who are new to NCAB. Sales in 2022 amounted to USD 24 million with an EBITA margin of roughly 15%. The sellers, Saul Kennedy and Paul Sargis, will both remain within the company and NCAB going forward.
“Phase 3 Technologies will further add to our growth in the USA. Phase 3 will also further expand our factory network in South Korea, much like our acquisition of db electronic in Germany announced recently. That will be appreciated by our customers,” says Peter Kruk, CEO of NCAB Group in a press release.
The purchase price was USD 23.5 million, with a potential earn-out based on increased gross profit in 2023. The company, along with its 17 employees, will be consolidated with NCAB Group from today.
“Phase 3 Technologies complements our North American operations well and will provide cross-selling opportunities. Getting a footprint in Silicon Valley and being able to provide our customers with fast deliveries of small volumes is particularly valuable when it comes to product development and prototypes,“ says Robert Balson, President North America Segment.