Cable and connectivity service provider BizLink Holding Inc (貿聯控股) yesterday said that it had acquired Leoni AG’s industrial solutions unit, enabling it to start booking income from the new business.
The company also renamed the new German business to INBG, BizLink said in a filing with the Taiwan Stock Exchange.
“INBG is a technical standard-setter and a market leader across a number of end markets. This deal will accelerate our long-term product segment and footprint diversification plans, as well as greatly raise our exposure to high-end applications,” BizLink said in the filing.
On Oct. 1 last year, BizLink announced that it had reached a binding agreement with Leoni to acquire the Nuremberg-based company’s industrial business for 451 million euros (US$511 million) in an all-cash transaction.
The company said it expected the acquisition to expand its market presence, especially in Europe.
INBG is a leading supplier of cables and cable systems for a wide range of sectors, including telecoms, healthcare, robotics, factory automation, e-mobility and rolling stock.
It has more than 3,000 employees and operates 15 production sites in Europe, North America and Asia.
Under BizLink, INBG is expected to contribute “sales, costs and supply-chain related synergies” to the parent company as integration efforts progress, the filing said.
INBG has six business units — silicone cables, tailor-made wire harnesses, telecom solutions, healthcare, robotic solutions and automation — and reported sales of 431.6 million euros, gross profit of 107.3 million euros and operating profit of 29.1 million euros in 2020, BizLink said.
INBG’s sales last year are estimated to have risen to more than 500 million euros, BizLink added.
“INBG’s operations are strong and profitability is stable, and there are no plans to reorganize [the unit] immediately after completing the acquisition,” BizLink said in the filing, adding that it intends to continue to develop INBG’s businesses, improve its product portfolio and integrate its resources with the parent company to achieve long-term growth.
BizLink — whose products range from cable assemblies to wire harnesses for use in the information technology, data communications, medical, consumer electronic, motor vehicle and industrial equipment industries — on Jan. 5 reported that revenue for last year grew 27.03 percent year-on-year to NT$28.68 billion.
The company has yet to release its full-year results for last year, but net profit in the first three quarters increased 18.21 percent year-on-year to NT$1.47 billion, or earnings per share of NT$11.02, company data showed.
Yuanta Securities Investment Consulting Co (元大投顧) forecast that the acquisition of INBG would increase BizLink’s annual revenue to NT$48.6 billion this year and NT$53.5 billion next year, as well as enhance the company’s net profit to NT$3.7 billion this year and NT$4.45 billion next year, up from an estimated net profit of NT$2.05 billion this year.
“We believe that INBG’s gross margin and operating margin are better than BizLink’s, and it will have a positive impact on the company’s overall profitability after the merger,” Yuanta said in a client note yesterday.
BizLink shares rose 1.15 percent to NT$264.5 yesterday, outperforming the broader market, which fell 1.75 percent, Taiwan Stock Exchange data showed.
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