discoverIE Group PLC (LSE:DSCV) has announced that it has acquired the German designer and manufacturer of specialist sensors Burster Group.
Strategically, Burster is closely aligned with discoverIE's strategy to develop its core capabilities in sensing technology.
It designs and manufactures high-performance load cells, torque sensors, displacement and pressure sensors for precision industrial applications, with a focus on industrial and medical end markets.
A total of 60% of sales are in Germany, and the remaining 40% in international markets has been growing as a share of the total.
Peel Hunt added that its conversations with management suggest an integration strategy consistent with previous deals, as senior management is to stay within the group.
Matthias Burster - currently managing director of Burster Group - is to move to a group-level role within discoverIE and a senior operational manager is to move up to his old role.
"This is comparable to the strategy pursued with other acquisitions and has proven an effective way of maximising opportunities for acquired businesses to sell into the broader customer base within a relevant cluster, particularly in international markets."
Buy with a 1,000p target is the broker’s investment view.