Inission grows in Norway through the acquisition of AXXE AS
Through its wholly owned subsidiary Inission Norge AS, Inission AB (“Inission”) has signed an agreement to acquire 100% of AXXE AS (“AXXE”). AXXE is a reputable EMS company (Electronics Manufacturing Services) with operations located in Halden. Through the acquisition, Inission expands its geographical presence in southern Norway and thereby strengthens its position.
The agreement was signed on January 17, 2024 and the closing will be January 31, 2024. According to the agreement, the price for 50.1% of the shares in AXXE amounts to NOK 27 million corresponding to EV = 5xEBITDA average for 2021-2023. The agreed additional purchase price for the remaining 49.9% of the shares at the corresponding EV = 6xEBITDA based on AXXE’s average results in 2024 to 2026. The payment of the shares upon entry is financed with a bank loan.
About AXXEAXXE’s history can be traced back 40 years and was founded in its current form in 2007. AXXE is an EMS company with 46 employees located in Halden, Norway. In 2022, AXXE had a turnover of NOK 138 million with EBITDA of NOK 8.0 million. AXXE’s customer portfolio is well diversified with customers in several different segments such as off-shore, communications and IoT and industry.
Strategic justificationIn Inission’s strategy, growth through acquisition is prioritized and historically around one acquisition per year has been completed. MLB in Lohja, Finland, is Inission’s most recent acquisition, which after an on-boarding process and integration process with Inission Lohja performs very well. The acquisition of AXXE is a natural step on Inission’s continued journey of profitable growth.
AXXE’s high competence and manufacturing capacity contribute to Inission’s expansion in the Nordic EMS market. Furthermore, AXXE’s broad customer base complements Inission’s already strong customer portfolio with presence in several customer segments. For AXXE, the deal means opportunities to improve service and product range to existing and new customers in the Nordics.
Erik Dragset, MD Inission Løkken AS:– At Inission Løkken AS we are extremely happy to see Inission expand in Norway through the acquisition of AXXE. The company is one of the best-known EMS companies in the country and we look forward to a strong collaboration. With Inission’s and AXXE’s combined capacity and industry knowledge, we can offer our customers both ground-breaking solutions and world-class customer service.
Øystein Back, CEO AXXE AS:– As an EMS company in electronics manufacturing, we are one of the oldest and most experienced in our field. We have worked with the production and assembly of complex electronics together with many of our customers for more than 17 years. Our values are based on the desire to cooperate and take care of our customers in the best way to achieve our common goals. Our strengths are customer orientation, flexible manufacturing, quality, and a staff of experienced professionals. By combining our strengths with Inission, we can take care of our customers more efficiently, offer a wider range of services and develop our business in a completely new way. This ensures that we meet the growing needs of all sectors of the electronics industry. We look with great enthusiasm towards the future.
The acquisition will be consolidated as part of Inission’s finances from 31 January 2024.
