discoverIE Group plc has acquired 100% of the US-based company Hobart Electronics as part of a dual acquisition strategy that also included the British firm Positek. The strategic rationale for the acquisition is to strengthen discoverIE’s Design & Manufacturing (D&M) division and expand its geographic reach in the North American market. Hobart’s expertise in custom magnetic components perfectly aligns with discoverIE’s focus on high-margin, application-specific electronics for industrial sectors. By integrating Hobart’s engineering and manufacturing capabilities, discoverIE enhances its ability to serve international OEMs and increases the proportion of its revenue generated from outside Europe. This bolt-on acquisition is consistent with the group's long-term strategy of consolidating niche electronic specialists to drive underlying earnings growth.

HOBART ELECTRONICS, which reported an EBITDA margin of LOGIN in 2018, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN discount to the 13.0x average currently observed in the TMT (Tech, Media, Telecom) sector.

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