Kontron Acquires AP Labs Group

By Tish Drake | May 24, 2010
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Germany-based Kontron AG, through its U.S. subsidiary, acquired AP Labs Group, of San Diego, the companies announced Friday. Financial terms of the acquisition were not disclosed.

Kontron said the acquisition is designed to strengthen its position in the embedded systems market. AP Labs Group will be integrated with Kontron’s North American headquarters, which is also in San Diego. Kontron, which said it expects the two subsidiaries to make a combined annual revenue of $30 million, said it has access to cost-efficient local production capacities as the result of the company AP Parpro Inc., which also forms part of the group and is located in Mexico, close to Kontron’s North American headquarters.

"We are strengthening ourselves both regionally in the USA, and also in the area of high-margin complete solutions," said Kontron CEO Ulrich Gehrmann. "AP Labs’ complementary system product line also perfectly supplements our French subsidiary’s board product range in the security segment, which reports consistent growth, and has historically been independent of business cycles."

In 2008, Kontron acquired the former French company Thales Computers SA from Thales Group, strengthening Kontron both in the defense/aerospace area, and regionally in Europe. The U.S. Defense Department’s official accreditation of AP Labs also now facilitates even better access for Kontron into the high-margin U.S. market, the company said.

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