STOCKHOLM -- NCAB Group today signed an agreement to acquire 100% of the shares in Electronic Advanced Circuits S. L. based in Madrid, Spain.

NCAB will pay SEK14 million ($1.25 million) with a potential earnout capped at a maximum amount of SEK4 million ($358,000). The transaction is scheduled to close in November.

Electronic Advanced Circuits expects net sales of SEK 19 million ($1.7 million) in 2023 with an estimated EBITA margin of about 15%. The company has two employees. The majority of sales comes from the telecom and industrial sectors and sourcing is made from manufacturing partners in China.

NCAB Spain had 13 employees and sales of SEK75 million ($6.7 million) in 2022. The acquisition is expected to be accretive to earnings in 2024. Synergies are expected in the areas of suppliers, payment terms and logistics.

NCAB Group is in addition establishing a new entity in Portugal, NCAB Group Portugal and two new employees are recruited, both with extensive experience from the PCB industry.

In a statement, Benjamin Klingenberg, vice president, NCAB Europe, said: “With these two strategic actions, we gain highly skilled and experienced personnel, who will complement our existing capabilities and play a pivotal role in unlocking new growth opportunities and expanding our networks. We are taking steps forward in our expansion plans in Spain and Portugal. The Iberian Peninsula is of growing interest for the electronics market in Europe."