NOTE has acquired 100 percent of the shares in STI Enterprises Holdings Limited ("STI"), the UK's leading manufacturer of advanced and mission-critical electronic solutions for the defence industry. The acquisition strengthens NOTE's position within the strategically important defence segment and represents a significant expansion of the Security & Defence segment.
STI is a well-established EMS partner with long-standing customer relationships and extensive experience of working with leading global defence companies. The company operates across all defence domains - air, land, cyber and marine - and runs two high-technology production sites in Hook and Poynton, with extensive capabilities in advanced PCBA, box build and testing.
STI is expected to generate revenues of GBP 60 million (~SEK 750 million) in 2026 and has a strong order book. Profitability is in line with NOTE's. The company has approximately 300 employees.
"STI is a strategic acquisition for NOTE. The company has a unique position as a leading EMS partner in the UK and complements our existing operations in an exceptional way. Their technological capabilities and strong customer relationships within defence, strengthen our offering and create significant growth opportunities. We look forward to continuing to build a strong European player with long-term sustainable growth," says Johannes Lind-Widestam, President and CEO, NOTE.
"We are very proud of what STI has achieved in recent years and of the strong trust we have built with leading defence customers. Becoming part of NOTE gives us a strong platform to accelerate our growth, broaden our offering and strengthen our position in the UK and international defence industries. I am delighted to join NOTE and feel privileged to lead STI's dedicated team into our next phase, where we invest in growth together with some of the largest Defence primes and OEMs," says Tom Garvey, CEO of STI.
The purchase price amounts to GBP 72.5 million on a cash- and debt-free basis, corresponding to an adjusted EV/EBITDA multiple of approximately 10x. The acquisition is financed through credit facilities obtained from SEB totaling SEK 900 million, of which SEK 400 million falls due within 12 months.
NOTE confirms its outlook for the full year 2026 and provides outlook for the first quarter
In connection with the Q4 report, NOTE communicated that the start of the year was expected to be weak, followed by a gradual strengthening over the year. This scenario remains unchanged and now also incorporates the acquisition of STI, which is expected to contribute revenues of approximately SEK 550-600 million during the remainder of 2026. The operating margin for the full year is expected to amount to 9.5-10.5%.
NOTE's net sales for the first quarter, in which STI will contribute approximately SEK 20 million, are expected to amount to SEK 930-960 million, with an underlying operating margin of 8.5-9.0%.
NOTE's financial position is strong with an equity ratio of around 50 percent as of year-end 2025. NOTE expects continued strong operating cash flow for the full year 2026.
Invitation to presentation
NOTE invites you to an online presentation regarding the acquisition of STI. The presentation will take place today, 20 March, at 1:00 pm CET. To view the broadcast, right-click the link here and select "open link". No pre-registration is required to watch the webcast. A recording will be available afterwards on NOTE's website www.note-ems.com.
NOTE processes the personal data provided in the registration in accordance with the company's Privacy Policy. When participating digitally, only the personal data you choose to provide will be saved. Read more about how NOTE handles personal data in the company's Privacy Policy: https://www.note-ems.com/wp-content/uploads/2023/03/NOTE-Privacy-policy_rev-5.pdf
For more information, please contact:
Johannes Lind-Widestam, CEO and President, tel. +46 (0)70 541 7222
Frida Frykstrand, CFO, tel. +46 (0)70 462 0939
About NOTE
NOTE produces PCBAs, subassemblies and box build products. NOTE is a competitive EMS provider and stable business partner to customers with high standards. NOTE's products are embedded in complex systems for electronic control, surveillance and security, for example.
NOTE's business model builds on delivering high end manufacture, custom logistics solutions and consulting for the best possible total cost through long-term customer relationships and partnerships. Its customer offering covers complete product lifecycles, from design to after-sales. Primarily, its customer base consists of large corporations operating on the global market, and enterprises whose main sales are in northern Europe.
NOTE has a presence in Sweden, Finland, the UK, Estonia, Bulgaria and China. Sales over the last 12 months were SEK 3,814 million, and the group has approximately 1,450 employees. NOTE is listed on Nasdaq Stockholm. For more information, please go to www.note-ems.com.
This information is information that NOTE AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-03-20 08:00 CET.
