Cemtrex, a global industrial and manufacturing solutions company, which hasn’t had a foothold in the U.S. up to now, announced that it has entered into a Letter of Intent to acquire an electronics manufacturing solutions company based in Silicon Valley. The company is an electronic manufacturing services provider for semiconductor customers and OEMs in the medical, industrial, and telecommunications industries and has averaged $7 million in annual revenues over the last two years. It also has an office in India to support its engineering and prototype development and operational activities.
This acquisition would be Cemtrex’s first foray into the U.S. electronics manufacturing market. Cemtrex already has an established manufacturing base in Europe with two locations in the German market and one site in Romania. With this new acquisition, Cemtrex can offer its existing clients, who are typically global players, much needed manufacturing support and solutions in the U.S. market.
The acquisition also sets the stage for Cemtrex’s expansion into Asian markets down the road for manufacturing solutions with the new Indian location. Establishing a presence in Silicon Valley is also one of the most compelling places to offer electronic manufacturing services as the region has been booming with new hardware and software development attributed to new trends in wearable technology, “Internet of Things” devices, drones, and robotics. Cemtrex will look to capitalize on this growth and focus on working with innovative startups and entrepreneurs in developing disruptive products.
“This pending acquisition is a strategic milestone in our effort to strengthen our electronics manufacturing solutions business,” said Saagar Govil, Chairman and CEO, Cemtrex. “Silicon Valley is exactly where we want to be as we know the opportunities for our products and services will be in high demand long into the future. With this deal we will also be acquiring a support office in India which will allow us to leverage low cost engineering and administrative support to be competitive globally.”
The terms of the deal and the name of the acquisition target was not disclosed due to confidentiality reasons. The transaction is expected to close before December 31, 2016.
Edited by
Alicia Young
