Joyson and Preh to Acquire TechniSat Automotive

NOVI, Mich. - Feb. 2, 2016 - PRLog -- The Ningbo Joyson Electronic Corp., Ningbo (China) and its subsidiary Preh Holding GmbH, Bad Neustadt a. d. Saale, Germany, are each acquiring 50 percent of the TechniSat Automotive division from TechniSat Digital GmbH, Daun, Germany. The parties signed a Letter of Intent on January 29, 2016.

Within the Joyson Group, TechniSat Automotive will be part of the Automotive Electronics division, together with Preh GmbH, as Preh TechniSat Car Connect GmbH. The acquisition represents a sustainable strengthening and competency expansion of the Preh Group to create a leading global systems provider in the automotive sector. With the combined competencies of Preh and TechniSat Automotive, Joyson is forming a technology group with a sales volume of over a billion euros that will develop into a global player in car connectivity and human machine interface systems (HMI).

The approximately 1,200 employees at TechniSat Automotive will be retained. Likewise, the TechniSat development locations in Dresden, San Carlos/California (U.S.A.) and Shanghai (China), as well as the production sites in Dippach/Thuringia and Oborniki (Poland) and an operative location in Daun will all be kept. The contractual parties agreed not to divulge details of the transaction. The acquisition is subject to approval by the relevant authorities. In the future, TechniSat Digital GmbH, Daun will focus on its Consumer Electronics Division and independently develop that field further.

TechniSat Automotive develops and produces innovative products and software solutions in the fields of car infotainment, navigation, vehicle networking and telematics. As a Tier 1 supplier to the automotive industry, the company has many years’ experience as a development partner for navigation systems for leading automobile manufacturers, especially for the Volkswagen Group. TechniSat Automotive’s capabilities include years of expertise in software solutions for tuners and telematics.

Following the agreement, Jeff Wang, founder and majority shareholder of Joyson, said, “We’re beginning a new chapter in the Joyson growth story. The acquisition of TechniSat Automotive moves our already highly successful automotive electronics activities into a new dimension. The competencies of Preh and TechniSat Automotive complement each other ideally and open up new mutual business potential. We will integrate the renowned Preh car HMI concepts with TechniSat Automotive’s successful telematics and infotainment into innovative overall solutions.  I’m convinced that the acquisition represents a win-win situation for both Preh and TechniSat.”

The founder and Managing Director of TechniSat Automotive, Peter Lepper, said, “For us the key was to find an investor that had both the technical know-how and the broad customer base to develop our automotive business further in a forward-looking way. The international competitive position of TechniSat Automotive is sustainably strengthened through the investor Joyson and the operative partner Preh. TechniSat Digital GmbH will now focus completely on the Consumer Electronics division and expand it further.”

TechniSat Automotive customers will retain their familiar contacts. Furthermore, the fact that the managing director of the new Preh TechniSat Car Connect GmbH is Peter Kohlschmidt, who was formerly the TechniSat managing director responsible for automotive business, ensures maximum continuity.

Preh CEO Christoph Hummel said, “We look forward to collaborating with our colleagues from TechniSat Automotive and welcome them to the Joyson Group. We at Preh value the high level of technological competence and innovative drive at TechniSat Automotive and are convinced we ‘speak the same language’ in terms of business understanding and technological trends. With the support of our partner Joyson, we will exploit new business potential and achieve successful international growth.”

According to Hummel, instead of being a classic synergy theme, the acquisition is far more a perfect combination of technological competencies and market access.

About Joyson/Preh

In addition to its operative automotive supply and automation fields, Joyson Investment Holding Co., Ltd, Ningbo (China) also has a real estate segment and 8,200 employees worldwide. The Joyson Group was founded in 2004 by Jeff Wang.  Joyson has pooled its automotive and automation activities in the market-listed Joyson Electronics, Ningbo/China (600699:Shanghai). Within Joyson Electronics, Preh represents the corporate divisions of Automotive Electronics and Automation, while the corporate division Automotive Components consists of Joyson Automotive and QUIN.

As a globally positioned automotive supplier and automation specialist, Preh generated sales of around €760 million ($825 million) in 2015, thereby continuing its dynamic growth with double-figure growth rates. Preh currently has 4,900 employees worldwide. The company was founded in 1919 in Bad Neustadt a. d. Saale and has been a subsidiary of the Joyson Group since 2011. Preh operates at locations in Germany, Portugal, Romania, Mexico, the U.S.A. and China. The development and manufacturing competencies of Preh focus on CAR HMI systems, e-mobility control units, and assembly and automation facilities.

About TechniSat

TechniSat Digital GmbH was founded in 1987 by Peter Lepper with the aim of producing high-quality satellite products for consumers. That philosophy not only made it successful in Germany, but also in Europe and around the world.  Today, TechniSat has over 2,150 employees at several locations in Germany and Europe, where the company can offer development, production and services from a single source. TechniSat develops its HDTV-ready digital televisions and set-top boxes at its own research and development center in Dresden and produces them at its German manufacturing sites in Stassfurt/Saxony-Anhalt and Schöneck/Saxony.

For over 15 years, the TechniSat Automotive division has developed and produced high-quality products in the field of car infotainment, primarily car radios and radio-navigation systems. In 2015, the division generated sales worth €450 million ($488 million), representing again a high double-figure percentage growth rate. TechniSat Automotive currently has a total of 1,200 employees at two locations in Germany and in Poland, the U.S.A. and China.