S&T AG mops up Iskratel

News and Business

Austrian IT company S&T AG has acquired the Iskratel Group, best known for its PON technology, for €37.5 million. The transaction is scheduled to close in autumn 2020, once all the official approvals have been obtained. S&T AG is a leading supplier of communications systems in Central and Eastern Europe. The S&T AG group employs some 4,900 people, operating in 32 countries around the world, and is listed on the Frankfurt Stock Exchange. Both companies recognise synergies for their future development and success, especially in IIOT software and 5G applications, which complement and strengthen the S&T product range. The acquired 5G know-how and the solutions based on it can be combined with established S&T products in the smart industry sector, such as SusieTec. The roll-out of 5G equipment on high-speed trains can also be advanced while strengthening the transport business. This is an area where the S&T Group has already implemented joint projects with Iskratel in Slovenia. Further synergies will open up in areas such as sourcing, manufacturing and sales, with S&T providing Iskratel with access to the Western European market. In return, S&T can draw on Iskratel’s employees and long-term reputation in the Adriatic region and Eastern Europe.

Željko Puljić, CEO Iskratel said, “The Iskratel Group has made a very clear and ambitious strategic plan which will be much more efficiently realised through numerous synergies within S&T AG. Faster portfolio development and market penetration, especially in areas of IIOT and 5G solutions, safe and smart communities, virtualisation of access and core communication networks will be enabled through a stronger combined innovation and know-how, sourcing and sales network. We are also increasing human capital, which we continue to recognise as a crucial element in further success.”

Hannes Niederhauser, CEO S&T AG(pictured) said, “We have been following 5G developments for a long time, have identified applications ready for this technology, and expect to gain an advantage by strengthening our 5G product portfolio. Due to our synergies we will be able to increase Iskratel’s results to over 10% of EBITDA within the next 2 years. With this acquisition, we are positioning ourselves even more strongly for the future in our focus areas of smart factories and train radio for high-speed trains.”

In 2019, with 900 employees, the Iskratel Group generated sales of EUR 115 million and a slightly positive result. Iskratel recently announced optical communications supply contracts in Slovenia, Croatia and Ukraine, as well as supporting Telenco’s FTTH rollout in France.

For more information, visit www.iskratel.com