Cemtrex, an industrial and manufacturing solutions company, has entered into an agreement to acquire electronics manufacturer, The Target.
The Target is a company focused on electronic manufacturing services primarily for the major German automotive manufacturers, including Tier 1 suppliers in the industry, as well as for industries like telecommunications, industrial goods, luxury consumer products, display technology, and other industrial OEMs.
The Target’s projected annual revenues for the next 12 months is expected around €30 million and the company has a history in the electronics manufacturing industry extending back decades.
From self-driving cars to fully electric vehicles, the automobile industry is undergoing a significant technological disruption and Cemtrex is positioning itself right in the middle of this transition.
The automotive electronics market was valued at $185 billion in 2015 and is anticipated to reach $353 billion by 2023, according to research by Global Market Insights.
Cemtrex already has a German subsidiary in the electronics manufacturing sector and with this acquisition, it will secure a broader base and larger market share in the eurozone.
Cemtrex’s chairman and CEO, Saagar Govil, says: “This acquisition is a significant strategic milestone in our effort to strengthen our position in the European EMS market and get into the exponentially growing automotive market. German automobile companies are driving innovation in the industry and we are eager to tap into this market for the future.”
This is the second strategic acquisition for Cemtrex in this fiscal year.
Govil says: “We are constantly focused on finding smart acquisitions that can help us scale and achieve sustainable growth and this acquisition falls precisely into our sweet spot when seeking out opportunities. We are looking forward to closing this transaction and continuing to take Cemtrex to greater heights.”
The transaction is expected to close on May 31, 2016.
