Core Viewpoint - Kitron ASA has agreed to acquire DeltaNordic AB, a Swedish provider of advanced electronics and electrical systems, particularly in the defence sector, which is expected to enhance Kitron's capabilities and market position [1][2]. Transaction Details - Kitron will acquire 100% of DeltaNordic AB shares for an enterprise value of SEK 1,255 million (EUR 114 million), with a cash component of SEK 760 million (EUR 69 million), Kitron shares worth SEK 150 million (EUR 14 million), and an earn-out payment of SEK 345 million (EUR 31 million) based on revenue targets [8]. - The acquisition is subject to approval from the Swedish Competition Authority and the Swedish Inspectorate of Strategic Products, expected to be completed by late December 2025 or early January 2026 [8]. Strategic Rationale - The acquisition strengthens Kitron's position in the fast-growing Defence & Aerospace sector and expands its footprint in Sweden, a NATO member known for military technology innovation [8]. - DeltaNordic's expertise in designing and manufacturing electronics for demanding environments will enhance Kitron's capabilities in design, prototyping, and high-level system production [8]. - Minimal customer overlap between the two companies creates new growth opportunities [8]. Financial Outlook - DeltaNordic's revenues are projected to be approximately SEK 815 million (EUR 74 million) in 2026, with about half coming from defence customers [3]. - EBITDA for DeltaNordic is estimated at SEK 120–140 million (EUR 11–13 million) in 2026, supported by a strong order book [8]. - Kitron's revenue excluding DeltaNordic is projected to be EUR 700–740 million in 2025 and EUR 785–865 million in 2026 [16].