BILLINGSTAD, NORWAY – Kitron ASA has signed an agreement to acquire 100% of the shares in Veru Electronic GmbH for 700,000 euros (about $1.1 million).
 
The closing of the deal is subject to reaching an agreement about the debt financing of the company, and is scheduled for early 2010. After the close, Veru will become a wholly owned subsidiary of Kitron ASA.
 
In announcing the deal, Kitron said the company was attractive because of its location. “It is part of Kitron ASA’s strategy to enter into new geographical markets," said Roger Hovland, corporate vice president. Germany is the largest EMS market in Europe and is seen as having the highest potential for further outsourcing, the company said. "Having a local entity gives credibility and shows long-term commitment," Kitron said in a press release.
 
Veru will be used for prototype and NPI work, the company said.

Veru, which operates a 25,000 sq. ft. plant in Großbettlingen, had 25 employees and sales of 2 million euros in 2007, according to the CIRCUITS ASSEMBLY Directory of EMS Companies.