Reading time ( words)
Cemtrex Inc. has entered into an agreement to acquire all the assets of an electronics manufacturing company located in northern Germany. The target is a company focused on electronic manufacturing services (EMS) primarily for the major German automotive manufacturers, including Tier 1 suppliers in the industry, as well as for industries like telecommunications, industrial goods, luxury consumer products, display technology, and other industrial OEMs.
The target company's projected annual revenues for the next twelve months is expected around €30 million and the company has an illustrious history in the electronics manufacturing industry extending back decades. From self-driving cars to fully electric vehicles, the automobile industry is undergoing a significant technological disruption and Cemtrex is positioning itself right in the middle of this transition. The automotive electronics market was valued at $185.05 billion in 2015 and is anticipated to be $352.92 billion by 2023, as per a new research report by Global Market Insights Inc. Cemtrex already has a German subsidiary in the electronics manufacturing sector, and with this acquisition, it will secure a broader base and larger market share in the Eurozone.
Cemtrex’s Chairman and CEO Saagar Govil comments, “This acquisition is a significant strategic milestone in our effort to strengthen our position in the European EMS market and get into the exponentially growing automotive market. German automobile companies are driving innovation in the industry and we are eager to tap into this market for the future.”
This is the second strategic acquisition for Cemtrex in this fiscal year. “We are constantly focused on finding smart acquisitions that can help us scale and achieve sustainable growth and this acquisition falls precisely into our sweet spot when seeking out opportunities. We are looking forward to closing this transaction and continuing to take Cemtrex to greater heights,” Govil continues.
The transaction is expected to close on May 31, 2016.