Incap (ICP1V) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition targets growth in Germany, Europe's largest EMS market, and leverages a rebounding economy and expanding defense sector.

• Expands into design and development (ODM) services, enhancing value across the product lifecycle for both existing and new customers.

• Strengthens presence in defense, railway, and medical technology sectors, with a balanced customer base and established facilities in Germany and Romania.

• Diversifies customer portfolio and reduces dependency on single large accounts.

• Expands and complements the acquirer's geographical footprint and engineering capacity in the DACH region.

Financial terms and conditions

• Purchase price is €50 million equity value, payable at closing, with a potential earnout of up to €5 million based on 2026 EBITDA performance.

• Transaction financed through own funds and a €30 million bank loan.

• Lacon Group's net debt as of 2024 was €7.1 million.

• Lacon Group's unaudited pro forma revenue for Jan–Oct 2025 was €57.2 million, with adjusted EBITDA of €6.7 million (11.8% margin).

• Additional liabilities include a local term loan and a factoring financing facility.

Synergies and expected cost savings

• Synergies expected from cross-selling, improved capacity utilization, and procurement efficiencies.

• Enhanced and broader service offering anticipated to benefit customers of both companies.