Mycronic AB, the Swedish high-tech company, have obtained 75% of the Chinese company, Shenzhen Axxon Automation Co.,Ltd (Axxon), for the price of SEK 430 million.
Axxon develops, manufactures, and sells dispensing equipment, used in a range of products, for instance in household appliances to medical equipment. The Chinese company operates on the Surface Mount Technology (SMT) market, which refers to electronic devices that can be mounted directly onto circuit boards, replacing larger electronic components.
“With the acquisition of Axxon we are taking the next step in our strategy for our SMT business,” says Lena Olving, President and CEO of Mycronic.
“Overnight we are creating a leading dispensing business globally. Axxon’s technology is complimentary to ours. We see great value in Axxon’s market position in the important SMT market in China, but we also see value in the know-how represented by the people in Axxon,” she adds.
Axxon was established in 2008 and today employs 240 people. According to the company itself, it has gained its leading position in the Chinese market by developing mainstream products and an ability to adapt to the market.
Last year, Axxon increased its net sales with over 100% to SEK 150 million, a growth Mycronic plans to bolster, with a growth strategy that aims to reach sustainable net sales above SEK 2 billion.
“Axxon is very pleased to join Mycronic, we admire Mycronic’s advanced technology,” says Chen Long, founder and Chairman of Axxon.
“Axxon has enjoyed rapid growth in recent years, and has become a leader in the dispensing equipment industry in China with a high-value customer base in the smart phone and other mobile devices industry. It has a market driven, talented management team and solid technical strength. I believe that under the leadership of Mycronic, Axxon will soon become a global leading brand of dispensing equipment,” he adds.
Mycronic will obtain the remaining share of the company over a period of three years; 5% of the shares this year and the last 20% after three years. The price of the latter 20% will be based on the growth and earnings of the company in this period, and the price can therefore change compared to the current valuation.