Major Deal signed by Joyson. Target to be Top Automotive Industry Supplier
According to the latest announcement from Ningbo Joyson Electronic Corp. (“Joyson”), two global leading automotive components suppliers, Key Safety System Holding Inc. (“KSS”) headquartered in USA and TechniSat Automotive (“TechniSat”) from TechniSat Digital GmbH in Germany are acquired by Joyson recently. The total transaction amounts reach 1,1 Billion USD. Major deals for Joyson after the successful acquisition of Preh back in 2011. This is a huge milestone which fully aligns with Joyson’s strategy to grow in the areas of safety, intelligence and new energy.
With theof KSS, Joyson is enabled to entering into automotive safety area and becoming one of the top players. With the acquisition of TechniSat, Joyson is fully involved into car infotainment, navigation, connectivity, telematics and data service. These two deals also demonstrated that Joyson will be one of the leaders among the automotive suppliers.
With the strong support of the local governments and banks, including China’s major four state-owned banks, such as Industry Commercial Bank of China, China Agricultural Bank, Bank of China and China Construction Bank, and also international banks as HSBC and Deutsche Bank, the Ningbo government highly appreciate this deal and committed to continuously support Joyson’s grow including capital contribution.
Jeff Wang, the founder Board Chairman of Joyson, stated that these two lead players perfectly fit with our future grow strategy. We commit to continuously investment into KSS and TechniSat. Also with the synergy and cooperation with the existing Business Units, we will be one of the top suppliers globally.
Key Safety Systems (KSS) is a global leader in the system integration and performance of safety-critical components to the automotive and non-automotive markets serving the active safety, passive safety and specialty products sectors. Through highly specialized design, development and manufacturing, KSS’ technology is featured in more than 300 vehicle models produced by 60 customers worldwide. KSS is headquartered in Stering Heights, Michigan, USA, with a global network of 32 sales, engineering and manufacturing facilities. Revenue of 2015 estimated to exceed 1.5 Billion USD.
KSS is a global top supplier with strong competence in automotive safety sector throughout its rapid development in recent years. Since its first step into the automotive safety product segment in the 1950s, KSS has established a content-rich and complete database with large numbers of patents, which is a good basis for the future product and system R&D, making KSS one of the few system integrators of active – and passive safety technology worldwide. KSS possesses 947 IPs currently, covering the most technology fields of active safety and passive safety.
With the 5 main R&D centers located in USA, Germany, China, Korea and Japan and more than 900 R&D staffs, KSS serves the OEMs globally.
The KSS CEO Mr. Jason Luo said, “we are very excited toforces with Joyson, a widely respected and successful company that possesses an entrepreneurial spirit. This merge is perfectly aligned with KSS. Over the past years, KSS has achieved 20% revenue CAGR and we are looking forward for a continuing faster growth in the future. We truly appreciate the confidence our customers worldwide have placed in KSS, and we remain committed to serving them in an aligned and collaborative manner.”
KSS’ formal shareholders FountainVest, Crestview, Canada Pension Plan Investment Board (CPPIB) treated Joyson as strategy investor with long-term vision. They believe Joyson will bring KSS to a new level.
TechniSat develops and produces innovative products and software solutions in the fields of car infotainment, navigation, connectivity, telematics and data services. As a direct supplier to the automotive industry (Tier 1), TechniSat has many years’ experience as a development partner for navigation systems for renowned automobile manufacturers, especially for the Volkswagen Group. TechniSat’s competences include many years of experience in software solutions for tuners and telematics.
The approximately 1,200 employees at TechniSat will be integrated into the Automotive Electronics Business Unit of Joyson Group. Likewise, the TechniSat development locations in Dresden, San Carlos/California (USA) and Shanghai (China), as well as the production sites in Dippach/Thuringia and Oborniki (Poland) and an operative location in Daun will all be retained.
The founder and Managing Director of TechniSat, Peter Lepper, stated: “For us the key was to find an investor that had both the technical knowhow and the broad customer base to develop our automotive business further in a forward-looking way.”
International M&A support Joyson’s global growth
This M&A will enhance Joyson in the area of intelligent driving, active safety, automotive information systems and new HMI. With theof KSS, Joyson is successfully involved in active and passive safety area. Also withof TechniSat, intelligent navigation system and a series of vehicle information system module can be integrated and Joyson can provide a more complete HMI full range of solutions. In the future, HMI system will be further integrated with the main passive and active safety system, which provides excellent experience to customers.
“Safety, intelligent, telematics and new energy” are the trends for automotive future. With the great effort of Joyson, through the domestic organic growth and global expansion, Joyson will be the global top player.