discoverIE Group Plc (DSCV.L), a maker of customized electronic components, on Thursday announced the acquisition of the Burster Group, a German maker of specialist sensors, for an initial cash consideration of 30.6 million euros on a debt-free, cash-free basis. The acquisition will be funded through the company's existing debt facilities.
In addition, an earn-out of up to 12.4 million euros will be payable subject to Burster achieving certain financial performance conditions for its year ending December 31.
Nick Jefferies, Chief Executive of discoverIE Plc, said: "The transaction brings another high-quality business into discoverIE with strong alignment to our target markets, which is accretive to both underlying earnings and Group margin."
This acquisition is expected to be accretive to the acquirer's underlying earnings and underlying operating margin from April 1.
Burster, under its existing ongoing management, will join the Group's Sensing cluster within the Sensing and Connectivity division.
Founded in 1961, Burster makes specialist sensors, including precision load cells, torque sensors, displacement and pressure sensors, and others. For the 12-month period to December 31, 2024, Burster posted revenue of around 18 million euros.
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