KATEK Signs Purchase Agreement for 100% Takeover of American Nextek, Decides on Capital Increase

Estimated reading time: 3 minutes

KATEK SE has concluded a purchase agreement with the owners of Nextek Inc. in Madison, USA, to acquire all shares in the US company. The purchase agreement includes the acquisition of 100% of the shares in Nextek. This is already the second transaction in North America this year; the acquisition of the Canadian SigmaPoint Technologies Inc. took place only in August 2022. The transaction is subject to the necessary regulatory approvals and closing is expected in the first quarter of 2023 at the latest.

The acquisition not only expands KATEK’s site presence in North America, but also strengthens its access in the fast-growing Homeland Security & Defense, Medical, Energy, Highend Industrial and Aerospace sectors, which are new to KATEK. Nextek generated profitable annual sales of $37 million last fiscal year with approximately 170 employees. Nextek is successful in the field of highly complex products for critical applications with a focus on prototyping and small to medium volume production.

Rainer Koppitz, CEO & Co-Founder of KATEK: “This new member of the KATEK family ideally complements the acquisition of Canadian SigmaPoint, which was completed only in August, as a high-volume supplier of complex electronics. Both companies benefit from the strong reshoring trend in North America, which is currently massively accelerated by the current economic and geopolitical tensions.”

In addition to quick turn prototyping, Nextek offers sophisticated electronic assembly manufacturing, complete device manufacturing (box built) as well as analytical engineering, product engineering and comprehensive test services for well-known customers in the high-tech sector.

Nextek underlines its commitment to the highest quality standards, in addition to the usual ISO 9001, with certifications in the fields of aerospace (AS 9100D), medical technology (ISO 13485) and military technology (ITAR). The company has unique laboratory capabilities for testing materials and ensuring the quality required in critical applications. As a result, Nextek is ideally positioned to benefit from growth trends in the industries it serves.

Both parties anticipate that the realization of significant existing synergies, particularly in the areas of sales and supply chain, will further enhance the company’s already strong profitability. John Roberts, Nextek’s long-time CEO with excellent industry knowledge, will continue to run the site unchanged with his dedicated management team.

The KATEK management also decided on November 25 to increase the company’s capital in order to take advantage of the exceptional growth opportunities in the current market situation. Specifically, in the inorganic area, the current strong market share gains in the areas of solar/renewables (YTD sales plus 132%) and tele-care (plus 170%) are to be continued, as well as the ramp-up of the technologically leading AC white label charging solution ghost ONE of the KATEK subsidiary eSystems is to be fueled. “In addition,” says Dr. Johannes Fues, CFO of KATEK SE, “KATEK sees good opportunities next year for further value-enhancing company acquisitions as part of its successful acquisition strategy, including to expand its geographic presence in North America and Scandinavia.”

For this reason, the Management Board of KATEK SE has decided to make partial use of the existing authorized capital 2021/I and to increase the Company’s share capital of EUR 13,241,880.00 by up to EUR 1,203,807.00 to up to EUR 14,445,687.00 by issuing up to 1,203,807 new no-par value bearer shares with a notional interest in the share capital of EUR 1.00 per share against cash contributions.

Only Hauck Aufhäuser Lampe Privatbank AG, Frankfurt am Main, was authorized to subscribe to and acquire the new shares, with the obligation to offer them for subscription to the Company’s shareholders by way of indirect subscription rights. Within the subscription period, shareholders may subscribe to the new shares at a ratio of 11:1 at a subscription price of EUR 16.15. The subscription offer is being made free of prospectus charges. The subscription offer will be made without a prospectus. Hauck Aufhäuser Investment Banking is acting as sole bookrunner in the transaction. 

It is intended that the principal shareholder PRIMEPULSE SE waives all of its subscription rights so that this principal shareholder tranche can be offered to qualified investors after the end of the subscription period. In addition, new shares not subscribed by shareholders within the subscription period under the subscription right shall be offered to qualified investors at least at the subscription price within the framework of a rump placement together with the principal shareholder tranche. It is further intended that the principal shareholder undertakes to subscribe for new shares under the rump placement to the extent that other qualified investors have not subscribed for new shares.