Kitron Acquires DeltaNordic, Strengthening Its Position in Defence

19 Nov 2025 20:23 CET

(2025-11-19) Kitron ASA, through its subsidiary Kitron Holding AB, has entered
into an agreement to acquire DeltaNordic AB, a Swedish provider of advanced
electronics and electrical systems with a strong foothold in the defence market.

"DeltaNordic has established itself as a reputable supplier of robust
electronics and advanced electrical systems for defence and other demanding
sectors such as mining, construction, and infrastructure. These markets are
expected to drive significant growth, with a three-year outlook exceeding SEK
3.4 billion. Given DeltaNordic's strong growth trajectory, we are confident this
transaction will be earnings accretive and create substantial value for Kitron
shareholders," says Peter Nilsson, CEO of Kitron.

DeltaNordic serves blue-chip customers in defence, mining, and infrastructure.
Revenues are projected at approximately SEK 815 million (approximately EUR 74
million) in 2026. Currently, about half of its revenue comes from defence
customers-a share that continues to grow. The company operates two production
facilities in Sweden and one in Nanjing, China.

"We look forward to joining the Kitron group. We share Nordic roots, a focus on
high-cost-of-failure segments, and a commitment to profitable growth. Together,
we can leverage our combined strengths to unlock new opportunities for
DeltaNordic," says Rickard Vahlberg, CEO of DeltaNordic.

Transaction Details

* Kitron will acquire 100% of DeltaNordic AB shares from Mind Industrial Group
AB (majority owner) and JSLS Holding AB (minority owner), both of whom have
agreed to the transaction.
* The purchase is based on an enterprise value of SEK 1,255 million (EUR 114
million) on a debt- and cash-free basis.
* EV/EBITDA multiple of 9.65 based on estimated 2026 EBITDA of SEK 130 million
(EUR 12 million).
* Settlement will include:

* Cash: SEK 760 million (EUR 69 million)
* Kitron shares: SEK 150 million (EUR 14 million)
* Earn-out payment subject to revenue target: SEK 345 million (EUR 31
million)

* Completion is subject to approval from the Swedish Competition Authority and
that the Swedish Inspectorate of Strategic Products has cleared or given its
approval to the acquisition and is expected in late December 2025 or early
January 2026.

Strategic Rationale

* Strengthens Kitron's position in the fast-growing Defence & Aerospace
sector.
* Expands Kitron's footprint in Sweden, a NATO member at the forefront of
military technology innovation.
* Adds unique expertise in designing and manufacturing electronics and
electrical systems for demanding environments, enhancing Kitron's
capabilities in design, prototyping, and high-level system production.
* Kitron is uniquely positioned to fuel DeltaNordic's growth
* Minimal customer overlap creates new growth opportunities for both companies
* Expected to be earnings accretive and deliver significant shareholder value.

Financial Outlook

* DeltaNordic expects revenue of SEK 770-860 million (EUR 70-78 million) in
2026, supported by a strong order book.
* EBITDA is estimated at SEK 120-140 million (EUR 11-13 million) in 2026.
* Financing of the acquisition is contemplated by way of available funds and
facilities. Kitron may consider existing facilities in combination with
other financing alternatives, including new bank facilities, debt, equity or
other third party financing, to settle the cash part of the purchase price
at closing. There are no financing conditions for the acquisition.

Kitron Outlook

* 2025 (excluding DeltaNordic): Revenue EUR 700-740 million. EBIT EUR 59-66
million.
* 2026 (excluding DeltaNordic): Revenue EUR 785-865 million. EBIT EUR 70-84
million.

Advisors

MP Corporate Finance is acting as financial advisor and Advokatfirmaet Selmer as
legal advisor to Kitron. In addition, EY has been engaged to carry out financial
due diligence, and Bird&Bird has carried out legal due diligence.

Webcast Invitation

Kitron will host an online presentation of the transaction at 10:00 CET
tomorrow, 20 November. Access the webcast here:
https://channel.royalcast.com/landingpage/hegnarmedia/20251120_5/

To schedule a meeting with Kitron management, please contact Stine Kvamme Greve
at Nordea Corporate Access (+47 402 43 124 / stine.kvamme.greve@nordea.com)
(mailto:stine.kvamme.greve@nordea.com)).

For further information, please see attached presentation to this announcement.

For further information, please contact:
Peter Nilsson, President and CEO, tel. +47 948 40 850
Cathrin Nylander, CFO, tel.: +47 900 43 284
Email: investorrelations@kitron.com

About Kitron

Kitron is a leading Scandinavian electronics manufacturing services company for
the Connectivity, Electrification, Industry, Medical devices and
Defence/Aerospace sectors. The group has operations located in Norway, Sweden,
Denmark, Lithuania, Germany, Poland, the Czech Republic, India, Malaysia, China
and the United States. Kitron has about 2 400 employees, and revenues were EUR
647 million in 2024.
www.kitron.com

Important Information

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act. This stock exchange
announcement was published by Cathrin Nylander, Chief Financial Officer of
Kitron ASA on 19 November 2025 at [TIME] CET.

This announcement is not and does not form a part of any offer to sell, or a
solicitation of an offer to purchase, any securities. The distribution of this
announcement and other information may be restricted by law in certain
jurisdictions. Copies of this announcement are not being made and may not be
distributed or sent into any jurisdiction in which such distribution would be
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Matters discussed in this announcement may constitute forward-looking
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"strategy", "intends", "estimate", "will", "may", "continue", "should" and
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upon various assumptions, many of which are based, in turn, upon further
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when made, these assumptions are inherently subject to significant known and
unknown risks, uncertainties, contingencies and other important factors which
are difficult or impossible to predict and are beyond its control.

The information, opinions and forward-looking statements contained in this
announcement speak only as at its date and are subject to change without notice.
Kitron undertakes no obligation to review, update, confirm, or to release
publicly any revisions to any forward-looking statements to reflect events that
occur or circumstances that arise in relation to the content of this
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This announcement is for information purposes only and is not to be relied upon
in substitution for the exercise of independent judgment. It is not intended as
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This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act

More information:
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660092_Kitron investor presentation DeltaNordic.pdf