HMS Networks' growth journey continues with an acquisition by its Industrial Network Technology (INT) division. Today HMS entered into a binding agreement to acquire part of the Industrial Solutions Business Unit of Molex.
Molex is a global electronics leader committed to transforming technology innovation with interconnect solutions for a wide range of industries. Molex has a presence in more than 38 countries and has over 50,000 employees.
The acquisition consists of several strategic assets including:
- hardware and software intellectual property,
- a product portfolio consisting of network interface cards and software stacks,
- customer relations, primarily in USA and Japan,
- development teams based in Waterloo, Canada, and Le Thuit Anger, France, and
- the French company Woodhead Software & Electronics S.A.S.U.
"After some time of discussion, Molex and HMS concluded that the industrial communication business of Molex aligns closely with the vision of the INT division within HMS. We identified several synergies with Molex network interface cards, and their leading industry offer on network controller/scanners, which complement our INT product portfolio and create several cross-selling opportunities. At the same time Molex can focus fully on their core business, confident that their Industrial Communication customers will be in good hands with HMS. This is a perfect addition to the HMS portfolio and a win-win deal for both parties," says Bartek Candell, Senior Vice President of HMS Networks.
"Molex is delighted to transition our industrial communications business to HMS, a true market leader in the category," said Dave Atkinson, Vice President and General Manager of Molex Industrial Solutions. "We are confident that our talented team members will bring highly complementary engineering expertise and innovation capabilities to support our collective customers."
The primary rationale for the acquisition is to obtain strategic intellectual property and know-how from the experienced engineering teams. This acquisition supports division INT's strategy by strengthening its software and hardware offerings through complementary IP blocks. It also expands HMS's customer base in North America, a key strategic market and an essential initiative of the 2030 strategy for the INT division.
Financial impact
The existing customer base is expected to generate annual revenue above 10 million USD for the coming years and a positive EBITA-contribution for HMS, that does not substantially impact the overall profitability level of HMS. The purchase price for the assets has been agreed at USD 7 million, on a cash and debt-free basis, and will be paid in cash on closing. The deal is expected to close in January 2026. The acquisition will have a limited impact on HMS' Earnings Per Share.
For more information, please contact:
Staffan Dahlström, CEO HMS, +46 (0)35 17 29 01
Joakim Nideborn, CFO HMS, +46 (0)35 710 6983
HMS Networks AB (publ) is a market-leading provider of solutions in Industrial Information and Communication Technology (Industrial ICT) and employs over 1,100 people. Local sales and support are handled through over 20 sales offices all over the world, as well as through a wide network of distributors and partners. HMS reported sales of SEK 3,059 million in 2024 and is listed on the NASDAQ OMX in Stockholm in the Large Cap segment and Telecommunications sector.
