Austria-based S&T AG, which supplies IT systems in Central and Eastern Europe, has agreed to acquire Slovenian communications technology supplier Iskratel, the latter has announced. The deal is worth an initial 37.5 million euros, although that figure could rise depending upon future profit achievements. The acquisition is scheduled to close this autumn.
Iskratel serves customers in the telecommunications, energy, transport, public safety, and EMS fields. In telecom, the company is perhaps best known for its optical broadband communications equipment, particularly PON gear (see recent examples “Iskratel unveils software-defined PON offering via Radisys SD-PON framework” and “Iskratel to supply XGS-PON, GPON systems to CEBF-funded RUNE rural broadband project”). The Iskratel Group employed 900 people at the end of 2019 and generated sales of 115 million euros, which ended in what the company called “a slightly positive result.” Iskratel’s price tag equates to a revenue multiple of approximately 0.35.
S&T sees the pending acquisition as benefiting its efforts in industrial Internet of Things (IIOT) software and 5G applications; the two companies have already collaborated on the deployment of 5G equipment on high-speed trains. The two entities also will benefit from access to more geographical markets, with S&T opening the Western European market to Iskratel while benefiting from Iskratel’s presence in the Adriatic region and Eastern Europe.
“We have been following 5G developments for a long time, have identified applications ready for this technology, and expect to gain an advantage by strengthening our 5G product portfolio,” explained Hannes Niederhauser, CEO at S&T. “Due to our synergies we will be able to increase Iskratel’s results to over 10% of EBITDA within the next 2 years. With this acquisition, we are positioning ourselves even more strongly for the future in our focus areas of smart factories and train radio for high-speed trains.”
“The Iskratel Group has made a very clear and ambitious strategic plan which will be much more efficiently realized through numerous synergies within S&T AG,” added Željko Puljić, CEO of Iskratel. “Faster portfolio development and market penetration, especially in areas of IIOT and 5G solutions, safe and smart communities, virtualization of access and core communication networks will be enabled through a stronger combined innovation and know-how, sourcing and sales network. We are also increasing human capital, which we continue to recognize as a crucial element in further success.”
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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