Advanced Television

S&T acquires Iskratel

July 1, 2020

By Colin Mann

Describing the €37.5 million deal as the foundation for the long-term development and implementation of its business strategy, Austrian technology group S&T is to acquire the Iskratel Group, one of the leading European ICT providers for the digital transformation of the telecommunications, transport, public safety and energy industries.

Both companies recognise synergies for their future development and success, especially in IIOT software and 5G applications, which complement and strengthen the S&T product range. The acquired 5G know-how and the solutions based on it can be combined with established S&T products in the smart industry sector, such as SusieTec.

The roll-out of 5G equipment on high-speed trains can also be advanced while strengthening the transport business. This is an area where the S&T Group has already implemented joint projects with Iskratel in Slovenia. Further synergies will open up in areas such as sourcing, manufacturing and sales, with S&T providing Iskratel with access to the Western European market. In return, S&T can draw on Iskratel’s employees and excellent long-term reputation in the Adriatic region and Eastern Europe.

“The Iskratel Group has made a very clear and ambitious strategic plan which will be much more efficiently realised through numerous synergies within S&T AG,” commented Željko Puljić, CEO Iskratel. “Faster portfolio development and market penetration, especially in areas of IIOT and 5G solutions, safe and smart communities, virtualization of access and core communication networks will be enabled through a stronger combined innovation and know-how, sourcing and sales network. We are also increasing human capital, which we continue to recognize as a crucial element in further success.”

“We have been following 5G developments for a long time, have identified applications ready for this technology, and expect to gain an advantage by strengthening our 5G product portfolio,” added Hannes Niederhauser, CEO S&T AG. “Due to our synergies, we will be able to increase Iskratel’s results to over 10 per cent of EBITDA within the next two years. With this acquisition, we are positioning ourselves even more strongly for the future in our focus areas of smart factories and train radio for high-speed trains.”

In 2019, with 900 employees, the Iskratel Group generated sales of €115 million and a slightly positive result. The fixed purchase price of €37.5 million corresponds to a revenue multiple of around 0.35. Variable purchase prices were also agreed depending on future profit developments. The transaction is scheduled to close in autumn 2020, once all the official approvals have been obtained.

Categories: 5G, Articles, Broadband, Business, Equipment, M&A, Mobile

Tags: , ,