Finnish company Efore has sold its telecommunications business to Shenzhen Kexin Communication Technologies Co. Ltd.
The deal covers the entire Efore Telecommunications business including current product portfolio and Efore brand and name. Following the acquisition, 73 Efore employees in Finland, China and Sweden will move to the buyer as old employees. The purchase price on a cash and debt free basis is EUR 6,0 million and the estimated purchase price for the shares is EUR 3,5 million. Purchase price will be paid in cash.
The acquisition will be completed during the second half of this year. The acquisition is conditional among others to the completion of moving all Efore Telecom business to Telecom subgroup. The Kexin shareholders must also accept and all required authority approvals must be received.
Efore’s telecommunication net sales was in 2018 EUR 18,7 million and the result was negative. Efore’s total 2018 net sales was EUR 52,4 million.
This deal gives Efore an opportunity to remarkably renew its business.
“Efore has started from Telecommunications business and this has been part of Efore during its entire history. This deal will substantially change the company structure and future. We are developing new strategy, new financial targets and also a new name,” says the company in a statement.
The future compoany, codenamed “Efore 2.0”, will focus on two customer centric business lines: Digital Power Systems, which provides digital power supply systems for industry and e.g. rail transport, and Digital Power & Light, which provides power supplies for among others test and measurement equipment, industrial measurement, healthcare and lighting solutions.
Founded in 2001, Shenzhen Kexin Communication Technologies is a technology company that supplies technology for 5G mobile networks, IoT and data centres.
“Together with Efore can help us Kexin to develop telecommunications power supply business, expand our business boundaries, and seize the new opportunities in 5G industry. We can also achieve global expansion of our brand, capacity and market, improve the competitiveness of our existing products and realize differentiated pricing of similar products in the competition”, says Mr Yuyi Zhao, Head of Research Institute from Kexin.