Cicor Advances Closer to Acquiring TT Electronics in Significant Acquisition Progress

Basio badr

ago 6 hours

Cicor Advances Closer to Acquiring TT Electronics in Significant Acquisition Progress

Cicor is making significant strides toward acquiring TT Electronics, bolstering its position as a leading player in the electronics market. As of late October, the company announced enhancements to its acquisition offer for the British electronics firm. This move has sparked investor interest, resulting in a notable rise in Cicor’s stock price.

Cicor’s Revised Offer for TT Electronics

The new proposal includes an offer of 150 pence per TT Electronics share, which can be received in cash, as well as 0.0084 new Cicor shares or a combination of both. Previously, the offer was 100 pence per share along with 0.0028 new Cicor shares, which did not fully meet the needs of all stakeholders.

Investor Reactions and Key Stakeholders

The revision came following constructive discussions with TT Electronics’ board and major shareholders, who had previously expressed concerns about the deal. Notably, DBAY Advisors, which holds a 16.5% interest in TT, had opposed the acquisition, but the revised terms have garnered broader support.

Projected Impact on Revenue and Market Position

If the acquisition is successful, Cicor’s revenue is expected to more than double, achieving a combined annual turnover of approximately CHF 1.2 billion. This merger would position Cicor as a leading Electronic Manufacturing Services (EMS) provider, focusing on specialized markets such as industry, medical technology, aerospace, and defense.

Financial Implications and Future Plans

Cicor’s revenue for the previous year was CHF 480 million, with ongoing sales for the current year expected to reach CHF 441 million.
TT Electronics reported a revenue of GBP 521 million for the 2024 fiscal year.
Cicor intends to raise approximately CHF 75 million through the issuance of new shares to support this acquisition.

Should the transaction be completed, TT Electronics shareholders will own about 10% of the new Cicor entity. The existing leadership will remain intact following the merger, with the CEO of TT transitioning into the new management team.

Future Prospects for Cicor and the Industry

Cicor’s strategic acquisition approach, led by CEO Alexander Hagemann, promises to leverage the growing demand in an increasingly unstable global environment. The revised offer presents a compelling opportunity for TT shareholders, especially those who may have been hesitant due to the prior share structure, further enhancing investor confidence.