SINGAPUR (dpa-AFX) - XP Power Ltd. (XPP.L), critical power solutions developer to the electronics industry, on Monday announced acquisition of FuG Elektronik GmbH, and Guth High Voltage GmbH from Guth High Voltage GmbH for about 39 million euros, to be paid in cash.
Singapore-based XP Power believes that the acquisition of two complementary businesses strengthens its position in Germany, the largest market for power solutions in Europe.
FuG and Guth expect revenue of about 18 million euros and adjusted EBITDA of nearly 4.5 million euros for the year ended 31 December 2021.
The acquisition, which is expected to be earnings enhancing in 2022, complements the Group's existing footprint with an additional European design and manufacturing centre, the company said.
The management team of FuG and Guth will join XP Power, the Group added.
On closing the deal, net debt/EBITDA is expected to be well below 1.0x at FY22 year-end, XP Power said.
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