Term sheet signed
Congatec acquires stake in Kontron subsidiary JUMPtec
Kontron and Congatec have signed a term sheet under which Congatec would acquire a majority stake in the Kontron subsidiary JUMPtec by means of a capital increase. Only a few months ago, Kontron bundled its business with plug-in Computer-on-Modules (CoMs) in the subsidiary JUMPtec GmbH.
The term sheet sets out the basic features of such an investment, which have not yet been finalised. Like JUMPtec, Congatec is based in Deggendorf. Both companies offer plug-on CoMs according to the COM Express, COM-HPC, SMARC and Qseven standards.
As already announced on 14 May 2025, Kontron and Congatec, a portfolio company of DBAG (Deutsche Beteiligungs AG) Fund VIII, have started a manufacturing cooperation for CoMs as well as discussions about an equity investment of Congatec in JUMPtec. For reasons of efficient transaction structuring, Congatec already filed an antitrust notification in Germany and Austria last week, although no final agreement and contract documentation have yet been reached. If successful, Congatec will acquire a majority stake in JUMPtec and Kontron America Modules LLC. According to reports, Kontron could realise a profit in the high double-digit million range as part of the deconsolidation. However, the exact amount could not yet be estimated at the current stage of negotiations. Kontron's business with plug-in CoMs, which will then be bundled in JUMPtec GmbH, generated sales of around EUR 90 million in 2024 (Kontron as a whole: EUR 1.685 billion). The contract negotiations are expected to be finalised in the coming weeks.
According to the agreement between Kontron and Congatec dated 14 May, the Kontron Group will take over the supply chain management, production and logistics for the fabless company Congatec in addition to Congatec's existing manufacturing partners. Due to the similarity of their CoM modules and higher volumes, both Kontron and Congatec expect cost advantages and see themselves in a position to actively manage the effects of the current fluid customs development, especially in the USA, thanks to Kontron's production facilities there. This development is also the result of Congatec's strategy of pursuing a local-for-local approach in view of international trade and growing customer demand for geopolitical reasons. This enables Kontron to better utilise its production facilities and to draw on a broader technological portfolio of the joint investment for its system products.
Both companies rely on high quality standards and a broad and innovative technology roadmap with powerful partnerships with Intel, AMD, Qualcomm and NXP.
