TABY, SWEDEN – Mycronic has acquired Automation Engineering Inc., a US-based provider of modular automation equipment, for $35 million plus contingencies.

Mycronic could also pay up to $27 million more (approximately SEK 248 million) over two years based on parameters such as growth and earnings.

The acquisition is effective immediately and Mycronic is financing the deal from cash. AEI will be consolidated into the Mycronic Group.

The impact on Mycronic's 2016 results will be marginal, the firm said. Mycronic reiterated its forecast for net sales in 2016 of SEK 1,900 million, excluding effects from acquisitions.

AEI is based in Wilmington, MA, and has subsidiaries in Germany and Hong Kong, and approximately 80 employees. It had 2015 net sales of $ 19 million. Net sales for the first six months of 2016 were $11 million.

Mycronic added that the acquisition will open the door to additional electronics industry segments.

“The acquisition of AEI is a strategic complement to our current business," said Lena Olving, CEO and president of Mycronic. “We have been searching for interesting companies in segments adjacent to Mycronic. AEI matches our own product portfolio and areas of competence very well. I am happy to say that we are now expanding our offering with a world leading product. This strengthens our position in an industry with large requirements for high precision/high flexibility equipment.”

AEI develops and manufactures equipment for precision camera module assembly and test (CMAT) systems. Its largest customer segment is automotive, with significant growth for cameras in ADAS (Advanced Driver Assistance Systems). In June, Prismark Partners forecast the market for ADAS camera modules would grow at an average yearly growth of 30% between 2015 and 2020.

“The acquisition strengthens AEI’s global presence and provides access to expertise, which will deepen and strengthen our products and customer support," said Doug Elder, president and CEO of AEI. "Mycronic’s high-precision flexible platforms and dispensing technology, as well as advanced software control expertise, will be a key to our assembly and test solutions and the industry as a whole.”

In connection with the acquisition Mycronic will change its group's name from Surface Mount Technology (SMT) to Assembly Solutions.

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