Incap Paid an Additional Earn-Out of $3M to the Sellers of Pennatronics

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In July 2023, Incap acquired Pennatronics Inc., an electronics manufacturing services company located in Pennsylvania, USA. The acquisition agreement included a potential additional earn-out based on Pennatronics' EBITDA for the financial year ended March 2024. The maximum amount of the additional earn-out is USD 3.0 million (EUR 2.8 million), and it has now been paid in full to the sellers.

The acquisition of Pennatronics Inc.

Pennatronics Inc. was renamed Incap Electronics US, Inc. and the company is now a wholly owned subsidiary of Incap Corporation. The company has been reported as part of Incap Group as of July 2023.

The enterprise value of Pennatronics was USD 18.6 million (EUR 17.1 million). The acquisition was financed with a loan of EUR 19.5 million. In addition, approximately USD 1.6 million (EUR 1.5 million) was paid in Incap shares to Pennatronics’ shareholders.

The acquisition of Pennatronics is in line with Incap's growth strategy. It establishes Incap's position in the U.S. market and has created a foothold for further expansion there. Pennatronics' US production facility complements Incap's production facilities in Estonia, India, in the U.K. and in Slovakia. As a result of the acquisition, Incap's customer base broadened. In the United States, Incap is able to offer services to its existing and new customers, and Pennatronics' customers benefit from opportunities to source services in Europe and India. In the long term, the acquisition is expected to bring cross-selling opportunities and synergy benefits in e.g. material procurement.