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PartnerTech announced its agreement to acquire Swedish electronics manufacturer Vellinge Electronics on 9 October 2001; the acquisition was completed on 7 December 2001. PartnerTech paid with newly issued shares rather than cash: Skanditek received 2.9 million PartnerTech shares, taking its stake in PartnerTech from 24.3% to 44.0%.
When did PartnerTech buy Vellinge Electronics?
PartnerTech announced on 9 October 2001 that it had signed a letter of intent with Skanditek to acquire all shares in Vellinge Electronics. The transaction closed on 7 December 2001.
Vellinge was a Swedish electronics contract manufacturer. PartnerTech’s 2001 announcement described the company as having approximately SEK 500 million in annual sales and slightly more than 260 employees.
Who owned Vellinge, and how was the deal paid for?
Skanditek was the seller named in the deal announcement. According to Skanditek’s 2001 account, the consideration was 2,900,000 newly issued PartnerTech shares. The issuance increased Skanditek’s ownership of PartnerTech from 24.3% to 44.0%.
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Skanditek also reported that its group recorded a SEK 30.0 million loss on the sale, calculated using PartnerTech’s average share price over the ten trading days before the transaction. That accounting figure is not a cash purchase price for Vellinge, and the releases do not establish a standalone cash valuation for the company.
Why did PartnerTech acquire Vellinge?
The companies presented the deal as a way to combine complementary customers and capabilities. Vellinge had an established industrial-electronics customer base that included ABB, Atlas Copco and Gambro. PartnerTech had operations in telecom, IT, mechatronics and medical technology, as well as product-development capabilities.
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PartnerTech said the combination would strengthen manufacturing operations, broaden its customer base and improve its position in Sweden. Vellinge president Claes Wretlind described the merger as increasing the companies’ breadth and strength for customers and employees. In contemporary trade reporting, he also said they could use their respective competencies to become more efficient.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What did the acquisition mean for PartnerTech’s scale and market position?
Contemporary reporting described PartnerTech’s turnover before the acquisition as approximately SEK 1.1 billion and said the deal was expected to increase it by 50%. PartnerTech’s official release characterized the acquisition as doubling sales in IT/mechatronics, and its 2001 year-end communication said the company had become Sweden’s market leader in IT/mechatronics. These are different measures and descriptions: the 50% figure was trade reporting about overall turnover, while the doubling and market-leadership claims referred to the IT/mechatronics business and Swedish market.
PartnerTech CEO Mikael Jonson said the consolidation would strengthen its Swedish market position and that structural gains mattered in the prevailing business climate. The available public accounts describe expected strategic benefits and EPS impact, but do not give a standalone figure for synergies ultimately realized.
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