Cemtrex Inc. (NASDAQ: CETX) recently announced that it has completed the acquisition of German electronics manufacturer Periscope. With that, the company is expecting about $33.5 million boost to its topline over the next 12 months. That should bring the company’s annual revenue to more than $100 million, significantly up from $56.9 million in F2015 and $47.7 million in F2014.
In addition to the direct revenue benefit, Cemtrex Inc. (NASDAQ: CETX) also expects the acquisition of Periscope to expand its operations in Germany. Periscope provides electronic manufacturing services to German companies in sectors such as luxury consumer products, industrial goods, display technology and telecommunications among others.
The acquisition of Periscope has elevated the profile of Cemtrex to become one of the top 15 top providers in Germany’s electronics manufacturing sector (EMS). In that position Cemtrex will be seeking to take advantage of the 10.1% CAGR of the European EMS market between 2011 and 2017.
Cemtrex Inc. (NASDAQ: CETX) penetrating Germany’s automotive market
Periscope also serves major German automotive manufacturers and that is the segment where Cemtrex Inc. (NASDAQ: CETX) most of the juice. The company is hoping to capitalize on German’s electronic vehicle industry. According to Bloomberg, the sale of electronic vehicles (EV) was up about 60% worldwide in 2015 compared to the previous year. It is anticipated that the global EV market will be worth $352.9 billion by 2023 compared to $185.1 billion in 2015.
In particular, Germany is trying to encourage uptake of EV with government incentives targeting EV manufacturers and drivers.
Exceeding $100 million in annual sales
Cemtrex Inc. (NASDAQ: CETX) said it expected Periscope to be accretive in 2016. Periscope is expected to generate about $33.5 million over the next 12 months. If you combine that with the sales at Cemtrex, the management sees the company exceeding $100 million in annual sales in the next 12 months.
In addition to footprint expansion and sales boost, the acquisition of Periscope will also add more human talents to Cemtrex Inc. (NASDAQ: CETX).