Cicor acquires NEP, in talks to acquire German EMS firm

Cicor Group has acquired the Swedish development company Nordic Engineering Partner AB, establishing a significant presence in the Nordics. Additionally, Cicor is in advanced negotiations to acquire another German EMS provider, according to a media release.

The acquisition of Nordic Engineering Partner (NEP) AB gives Cicor a presence in Sweden, one of Europe’s leading markets for advanced electronics in the healthcare technology, industrial, and aerospace and defence sectors. The four engineering offices in the Stockholm area offer customized development services and prototype production for complex electronic systems. 

NEP has an attractive customer base in Cicor’s target markets which, together with Cicor’s existing customers, provides a strong platform for further growth, Cicor said in a media release. NEP has 45 employees and generated sales of SEK 52 million with an attractive operating margin in the last financial year ended 30 June 2024.

Cicor aims to become the leading pan-European electronics developer and manufacturer in key sectors like healthcare technology, aerospace/defence and industrial, the company announced in its ‘Strategy 2028’ this week. 

Following the acquisition of Evolution Medtech (Bucharest, Romania) earlier in 2024, the acquisition of NEP again doubles Cicor’s product development capacity and significantly broadens the portfolio of capabilities. 

The shareholders and management of NEP will stay part of the team to support further development in alignment with Cicor’s growth strategy, the media release said. As part of the Cicor Group, NEP will continue to operate all sites in Sweden unchanged and with the existing staff, maintaining a clear focus on growth in Sweden, Norway and Finland.

The target company in Germany is a service provider for the development and manufacturing of electronic assemblies and systems. Its long-standing customers include medium-sized companies and leading corporations, mainly in the industrial electronics and medical technology sectors. 

With its state-of-the-art machinery, excellent infrastructure, and further expansion reserves, this acquisition is an ideal next step in Cicor’s growth strategy in Germany, Europe’s largest electronics market. In the last financial year, the German company generated sales between EUR 20-30 million with an operating margin at the level of the Cicor Group. The transaction is expected to be signed in the coming weeks, subject to the usual regulatory and other closing conditions and is expected to be completed in early 2025.