HELSINKI – Incap Corporation has signed an agreement to acquire 100% of Germany’s Lacon Group in a transaction valued at $54.2 million, marking an expansion of the Finnish EMS provider’s presence in Europe and growing its position in fast-growing defense and industrial markets.

Lacon Group operates EMS and ODM facilities in Germany and Romania totaling roughly 21,300m². Its offering includes PCB assembly, cable harnessing, box build, system integration and design and testing services, which are capabilities that expand Incap’s scope beyond manufacturing and into full product-development support. For the first ten months of 2025, Lacon reported unaudited revenue of $61.8 million.

The purchase price will be paid in cash and funded through Incap’s own reserves and a bank loan of about $32.5 million. An additional earn-out of up to $5.4 million may be paid in 2027 based on Lacon’s 2026 financial performance. Closing is expected in the first quarter of 2026 pending foreign-investment approvals in Germany and Romania.

Incap expects the acquisition to increase revenue in 2026 and have a slightly positive effect on operating profit after accounting for integration and purchase-price allocation costs. The deal also gives Incap a larger foothold in the DACH region and adds more than 600 employees, bringing the combined organization to over 3,000 employees across Europe, Asia and North America.