Kontron acquires AP Labs Group

SAN DIEGO, Calif., 21 May 2010. Through its U.S. subsidiary, Kontron in Eching, Germany, acquired 100 percent of AP Labs Group, which has two operating companies and produces rugged enclosures and computer systems and other electronics for the defense industry as well products for in-flight entertainment systems.

May 21st, 2010

Posted by John McHale

SAN DIEGO, Calif., 21 May 2010. Through its U.S. subsidiary, Kontron in Eching, Germany acquired 100 percent of AP Labs Group, which has two operating companies and produces rugged enclosures and computer systems and other electronics for the defense industry as well products for in-flight entertainment systems.

Kontron officials anticipate that both new subsidiaries will make an annual revenue of $30 million. Kontron intends to integrate AP Labs with its North American headquarters, which like AP Labs is also based in San Diego

Kontron officials declined to comment beyond the data in their press release at this time.

For Kontron, whose revenue share in the security application area had already grown to 16 percent in the last business year, the strategic acquisition brings advantages in many respects, company officials say.

"We are strengthening ourselves both regionally in the USA, and also in the area of high-margin complete solutions," says Ulrich Gehrmann, chief executive officer of Kontron. "AP Labs' complementary system product line also perfectly supplements our French subsidiary's board product range in the security segment, which reports consistent growth, and has historically been independent of business cycles."

In 2008, Kontron acquired the former French company Thales Computers SA from Thales Group, strengthening Kontron both in the defense/aerospace area, and regionally in Europe. The U.S. Defense Department's official accreditation of AP Labs also now facilitates even better access for Kontron into the high-margin U.S. market.

"The future lies in high-margin and highly complex systems and solutions, as delivered by AP Labs. As an innovation leader, we aim to, and must, concentrate on this area," Gehrmann says.

AP Labs' strengths in the engineering area should also help Kontron to further optimize both future development costs and times to product launch, according to a Kontron release. Time-to-market will also be reduced significantly as a result of the complete solutions product range.

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