Strategic Acquisition Strengthens VTech's Global Businesses and Operations
HONG KONG and BOCHOLT, Germany, Jan. 24, 2024 /PRNewswire/ -- VTech Holdings Limited ("VTech", HKSE: 303), a global leader in electronic learning products from infancy through toddler and preschool and the largest manufacturer of residential phones in the United States, today announced that Snom Solutions GmbH, its indirect wholly-owned subsidiary, has entered into an Assets Purchase Agreement to acquire the assets (including the manufacturing facilities located in Bocholt, Germany) of Gigaset Communications GmbH ("Gigaset").
Gigaset is the market leader for DECT (Digital Enhanced Cordless Telecommunications) cordless phones in Europe. It also provides business telephony solutions for enterprise customers, Android-based mobile communications as well as cloud-based smart home offerings for private and business customers. Through the acquisition of Gigaset's assets, VTech will be able to strengthen its leadership position in residential cordless phones, expand its market channels and product portfolios globally, as well as manufacturing footprint in Europe. The acquisition would also add engineering talents to VTech's global R&D teams, leveraging synergies in technological development of its products and operational efficiencies.
"We are excited to be making this strategic acquisition. Gigaset's product portfolio, European market leadership, advanced R&D capabilities and manufacturing excellence are highly complementary with VTech," said Hillson Cheung, President of VTech Telecommunication Products. "With VTech's financial backing and management support, the business activities of Gigaset would be able to continue after the acquisition, and move towards a sustainable growth and development."
"The acquisition represents a significant step forward in our transition journey," said Dr Magnus Ekerot, CEO of Gigaset. "As part of the VTech family, we will have a solid foundation not only to strengthen the relationship with our global business partners, but also facilitate our products to reach more consumers and enterprise customers, giving us a unique platform to embark on a new era of growth."
The acquisition is expected to complete on 2 April 2024, subject to fulfilment of the closing conditions set forth in the Assets Purchase Agreement. VTech intends to fund the acquisition through internal resources.
Investor Conference Call
VTech will conduct a conference call to discuss the information included in this news release and related matters in April 2024 after the completion of the acquisition.
About Gigaset
Gigaset is a global leader in communications technology, offering a wide range of products and solutions. As Europe's market leader in DECT phones, Gigaset also ranks among the leaders internationally with around 850 employees and sales activities in over 50 countries. In addition to DECT phones, the business activities of the traditional German company with its more than 175-year history also include an extensive mobile communications portfolio for private and business customers, cloud-based smart home and smart care solutions as well as business telephony solutions for SoHo, SMEs and the enterprise sector.
About VTech
VTech is the global leader in electronic learning products from infancy through toddler and preschool and the largest manufacturer of residential phones in the US. It also provides highly sought-after contract manufacturing services. Since its establishment in 1976, VTech has been a pioneer in the electronic learning toy category. With advanced educational expertise and cutting-edge innovation, VTech products provide fun and learning to children around the world. Leveraging decades of success in cordless telephony, VTech's diverse collection of telecommunication products elevates both home and business users' experience through the latest in technology and design. As one of the world's leading electronic manufacturing service providers, VTech offers world-class, full turnkey services to customers in a number of product categories. The Group's mission is to integrate economic growth, environmental protection and social responsibility in its business strategies to design, manufacture and supply innovative and high quality products for the well-being of people and benefit of society, aiming to drive sustainable value for its stakeholders and the communities.