Volex, the AIM-listed power and data cable manufacturer, has announced it will acquire the remaining 64.3% stake in German connectivity firm Kepler SignalTek for $89.4 million. The deal, expected to complete in the coming weeks, gives Volex full control of the business after it initially bought a 35.7% stake in 2023.
Kepler SignalTek specialises in high-speed copper and fibre-optic cable assemblies used in data centres, telecoms infrastructure and industrial applications. The acquisition comes as demand for high-bandwidth connectivity surges, driven by the expansion of artificial intelligence, cloud computing and 5G networks across Europe and beyond.
Volex said the transaction would be funded from existing cash resources and debt facilities. The company expects the acquisition to be earnings-enhancing from the first full financial year after completion. Volex shares rose 2.1% on the news, trading at 324p by mid-afternoon, while the FTSE AIM All-Share index edged up 0.3%.
Analysts at Peel Hunt noted that the deal 'fits squarely with Volex's strategy of deepening its presence in high-growth connectivity markets', adding that the full integration of Kepler should improve margins and customer relationships. The acquisition is subject to customary regulatory approvals but is not expected to face significant hurdles.
For UK investors and pension holders, the deal highlights ongoing consolidation in the technology supply chain. Volex's move into full ownership of Kepler SignalTek reflects a broader trend of UK-listed firms seeking to capture value from the data infrastructure boom, which is a key driver of long-term growth in the industrial technology sector.