discoverIE Group PLC (LSE:DSCV), the designer and manufacturer of custom electronics, has announced it could pay up to €43 million (£36.4 million) for Burster, a German specialist in precision sensors.
The transaction includes an initial cash payment of €30.6 million (£25.9 million), funded through the company’s existing debt facilities.
An additional €12.4 million (£10.5 million) could be payable if Burster meets financial performance targets by the end of 2025.
Founded in 1961, discoverIE's new business produces specialist sensors such as load cells, torque sensors and electronic measurement instruments.
Its products are sold across 60 countries, with international markets accounting for approximately 40 per cent of sales, including Europe, Asia, and North America.
The company will join discoverIE's Sensing cluster, part of its Sensing & Connectivity division while maintaining its existing management team and brand identity.
The newly-acquired operation recorded revenues of around €18 million (£15 million) in 2024, with an operating profit margin exceeding the parent company's medium-term target of 15%. The acquisition is expected to boost earnings and operating margin from April.
discoverIE’s gearing ratio is forecast to rise from 1.25 times to 1.6 times following the deal, remaining within the firm’s target range of 1.5 to 2 times. The group described its pipeline of acquisition opportunities as “strong.”
CEO Nick Jefferies said: "Burster has an excellent portfolio that is highly complementary to our existing product suite and is a great addition to our sensor cluster.
"We warmly welcome the Burster team into the discoverIE Group and look forward to working with them."