Kontron AG: Project “Focus” finalized

Linz, 10.08.2022: Kontron AG (group.kontron.com, ISIN AT0000A0E9W5, WKN A0X9EJ, KTN) today signed agreements with VINCI Energies S.A. for the sale of significant parts of Kontron Group’s IT services business. VINCI Energies S.A., through its brand Axians, is a global information and communications technology group belonging to the listed French group VINCI.

With the divestment, Kontron is following its growth strategy in the technology area around the Internet of Things (IoT). While initially the sale of the entire IT Services segment as part of project “Focus” was evaluated by Kontron AG, various strategic considerations have led to the subsidiaries operating in this area in Austria, Romania and Hungary not being sold at the moment. The revenue of the divested units corresponds to an outgoing revenue of EUR 338 million with a profitability of EUR 41 million EBITDA (in financial year 2021). The transaction price amounts to approximately EUR 400 million based on the expected net liquidity at closing. The consumption of the agreement is subject to respective anti-trust approvals.

Richard Neuwirth, CFO of Kontron AG, as well as Michael Jeske, COO of Kontron AG, will resign from the Executive Board of Kontron AG in the course of the transaction. Clemens Billek will take over the CFO function from Richard Neuwirth.

Hannes Niederhauser, CEO of Kontron AG: “Today’s contract signing marks another milestone on our way to becoming a pure IoT player with significantly higher net profitability already in 2023. We will take advantage of the great growth opportunities in the profitable IoT market and use our high liquidity for further acquisitions. Our 2022 guidance remains unchanged and is expected to amount to EUR 1,120 million in revenue for continuing operations with an EBITDA margin of more than 10%. On top of this, we expect EUR 380 million of revenue from the sold entities under discontinued operations.”

Kontron plans to hold a capital market day on 31 August 2022 to present the strategy of the new Kontron and the changes in detail.

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