LONDON: DiscoverIE Group plc, a leading international designer and manufacturer of customized electronics, has announced the acquisition of German-based specialist sensor manufacturer Burster Group for €30.6 million (£25.9 million) in an initial cash consideration.

The deal will be funded from DiscoverIE’s existing debt facilities and includes an earn-out of up to €12.4 million (£10.5 million), subject to Burster achieving certain financial performance conditions by the end of 2025.

Founded in 1961, Burster produces specialist sensors such as precision load cells, torque sensors, displacement and pressure sensors, and electronic measurement instruments. The company has a diverse customer base and sells to approximately 60 countries, with 40% of sales coming from international markets, including Europe, Asia, and North America.

Under the acquisition, Burster will join DiscoverIE’s Sensing cluster within the Sensing & Connectivity division, retaining its brand identity and management team. The move aims to expand Burster’s international and domestic sales through access to DiscoverIE’s broad customer base and specialist sensor capabilities.

The Sensing cluster is part of DiscoverIE’s long-term growth strategy in the custom sensing market, driven by applications in the Industrial Internet of Things (IIoT), medical equipment, robotics, and artificial intelligence (AI). Burster reported unaudited revenues of approximately €18 million (£15 million) for the year ending December 2024, with an operating profit margin above DiscoverIE’s medium-term target of 15%.

The acquisition is expected to be accretive to DiscoverIE’s earnings and operating margin from April 1, 2025. The Group’s consensus gearing at March 31, 2025, is projected to increase from 1.25x to 1.6x, within the target range of 1.5x to 2x.

Nick Jefferies, Group Chief Executive of DiscoverIE, said, “The acquisition of Burster continues our strategy of building a differentiated, international, growth-focused electronics group with stronger operating margins. Burster’s portfolio complements our existing products and aligns with our target markets. We warmly welcome the Burster team to the DiscoverIE Group.”

Matthias Burster, Managing Director of Burster, added, “Joining DiscoverIE opens up new opportunities for international growth. Our commitment to customers and the delivery of cutting-edge sensor technology remains unchanged. We look forward to the next chapter with DiscoverIE.”

The acquisition is part of DiscoverIE’s ongoing strategy to strengthen its position in the global electronics market, leveraging its capacity for growth and development.

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