Global Citizenship: Redefining Connection and Responsibility in Digital Transformation
The Marketing Minute: Strategic Short-form Content Builds Brand Momentum
SMT Perspectives and Prospects: Artificial Intelligence, Part 5: Brain, Mind, Intelligence
EMS Transactions Down in 2015
February 3, 2016 | Lincoln InternationalEstimated reading time: 1 minute
There were 27 EMS transactions recorded in 2015, down from 33 recorded in 2014. EMS Consolidations were the most common type of transaction with 12 transactions in 2015, or 44% of total activity, compared to 17 transactions in 2014 which represented 52% of activity last year.
In 2015, there were 11 Vertical/Horizontal Convergences, up from the ten recorded in 2014. This year’s activity represented 41% of the total, compared to 30% last year. Private equity investments decreased in 2015, with two total transactions, or 7% of the total, as compared to six transactions in 2014 or 18% of last year’s total activity. There was one EMS divestiture, representing 4% of total activity, and zero OEM divestitures in 2015. Both categories recorded zero transactions in 2014.
There was one transaction categorized as diversification into EMS in 2015, representing approximately 4% of total activity, compared to zero transactions in 2014.
In terms of geography, 12 of the transactions completed in 2015 occurred in North America. This represented 44% of total transaction activity in 2015. The next largest geography in terms of transaction volume was Europe, with 11 transactions in 2015, representing 41% of total activity. Two transactions occurred between different high-cost countries (7% of the total). The final two transactions were split amongst other geographies with one occurring in Asia (4%) and one between a high-cost region and a low-cost region (4%). No transactions occurred in South America.
In terms of transaction size, Small Tier EMS providers accounted for a majority of the 2015 transaction volume with 14 acquisitions, or approximately 52% of total activity. Large Tier EMS providers accounted for seven acquisitions, representing approximately 26% of total activity. This level of activity from the Large Tier represents a significant increase compared to recent periods as this group recorded zero transactions in 2014. Six acquisitions by Mid-Tier EMS providers occurred during the year, representing approximately 22% of the total.
Share on:
Suggested Items
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
04/18/2025 | Andy Shaughnessy, Design007 MagazineIt’s been a busy week in our industry. Never a dull moment! If you’ve been paying attention to our tariff tumult with China and its effect on the stock market, especially if your company does a lot of business with China, you might be tempted to call in a Xanax refill about now. But hang tight. This is still early in the first quarter. This brouhaha serves to underscore our need to manufacture critical laminates and components in the U.S. In this week’s must-reads, we have a potpourri of articles covering tariffs, the next generation of HDI, the three-year anniversary of IPC Mexico, a novel green technology, and emerging design trends.
Real Time with... IPC APEX EXPO 2025: Aster–Enhancing Design for Effective Testing Strategies
04/18/2025 | Real Time with...IPC APEX EXPOWill Webb, technical director at Aster, stresses the importance of testability in design, emphasizing early engagement to identify testing issues. This discussion covers the integration of testing with Industry 4.0, the need for good test coverage, and adherence to industry standards. Innovations like boundary scan testing and new tools for cluster testing are introduced, highlighting advancements in optimizing testing workflows and collaboration with other tools.
IPC President’s Award: Xaver Feiner
04/17/2025 | Nolan Johnson, SMT007 MagazineThroughout his career, Xaver Feiner, vice president of marketing and sales at Zollner Elektronik, has developed extensive expertise in account management and new business development with a strong focus on the semiconductor industry, aerospace, and industrial electronics. Xaver has cultivated a profound understanding of global markets and remains deeply engaged with the challenges and opportunities presented by digital transformation. Since 2020, he has been an active member of the IPC Europe Advocacy Group, where he is dedicated to advancing the position of the electronics industry and the EMS sector across Europe.
New High Power 3D AXI for Power Electronics from Test Research, Inc.
04/17/2025 | TRITest Research, Inc. (TRI), a leading provider of Test and Inspection solutions for the electronics manufacturing industry, proudly announces the launch of the 3D AXI TR7600HP system. Designed for power semiconductor inspection, the TR7600HP enhances accuracy and efficiency in detecting defects in components such as IGBTs, MOSFETs, SiC inverters, and Paladin Connectors.
IPC APEX EXPO 2025 Learning Lounge: Education on the Show Floor
04/16/2025 | Andy Shaughnessy, Design007The conference portion of IPC APEX EXPO has been providing educational opportunities for attendees since the first show. But recently, show managers decided to expand education onto the show floor.