Kontron buys US company as strategic investment in security - Embedded.com

Kontron buys US company as strategic investment in security

The US subsidiary of Kontron has acquired specialist defense and aerospace systems integrator AP Labs Group (San Diego, Calif.)

Established in 1984 AP Labs has two subsidiaries and Kontron anticipates that the will add annual revenue of $30 million.

Kontron intends to integrate AP Labs with its North American headquarters, which is also based in San Diego and to make use of the cost-efficient, local production capacities as the result of the company AP Parpro Inc., which also forms part of the group and is located in a 45,000 sq. ft. facility in Mexico. AP Labs says it employs 85 people in San Diego.

Kontron's revenue share in the security application area grew to 16 percent in the last business year.

“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,” said Ulrich Gehrmann, Kontron's CEO.

“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 US Defense Department's official accreditation of AP Labs also now facilitates even better access for Kontron into the high-margin US market.”

Gehrmann believes “the future lies in high-margin and highly complex systems and solutions, as delivered by AP Labs.” AP Labs' strengths in the engineering area should also help Kontron to further optimize both future development costs and times to product launch.

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