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Italy's SECO to buy Germany's Garz & Fricke for 180 million euros

By Reuters

– Italian high-tech group SECO said on Monday it had entered a binding agreement to buy German Internet of Things (IoT) solutions producer Garz & Fricke for 180 million euros ($208 million).

The acquisition strengthens SECO‘s access to the German market, boosts its customer base and broadens its product portfolio, Chief Executive Massimo Mauri said in a statement.

The company added the deal – which will be funded with new debt facilities, cash on balance and newly-issued SECO shares – would create a group with expected revenues of over 180 million euros and adjusted core profits of above 40 million euros by 2022.

SECO added Garz & Fricke would boost its earning per share in the first full year after acquisition.

Mauri told Reuters the group aimed to make more acquisitions in 2022.

“We are looking at the cybersecurity sector, especially in the United States. It can be very complementary to our solutions,” he said in a phone interview.

Mauri added around 50% of group revenues currently came from abroad but that would rise to about 70% after the Garz & Fricke’s acquisition.

($1 = 0.8639 euros)