IEE wanted to refocus on its core business, sensors inside vehicles. All Circuits made 75% of its sales from car manufacturers' electronic boards, these plates (generally made of insulating material such as fibreglass) to which electronic components are attached (chips, resistors, sensors, connectors...) and conductive tracks that link these components together for ABS, air conditioning, or power steering (to name just a few practical examples).
As All Circuits wanted to grow, it obtained the go-ahead from its parent company, the Chinese Aerospace Hi-Tech Holding, to find a buyer who would retain the branding and management, so not American and not European, given the lack of interest from European players at a time when the automotive sector is in crisis. In the end, DBF Technology put €96m on the table (compared with €68.9m in 2015, according to our calculations) to take over the 39% of IEE and the 61% of Hiwinglux - IEE's sister company in Luxembourg. DBG, which is listed on the Shenzhen stock exchange and majority-owned by Hong Kong capital, employs 30,000 people in Asia and has factories in China, but also in Bangladesh, India and Vietnam.
A great sectoral and geographical fit has been created: All Circuits primarily covers the automotive industry, but also industrial and medical, while DBG Technology focuses mainly on consumer equipment, although it is increasingly developing in the automotive sector, and this acquisition will enable it to address the surging Chinese automotive sector.
"IEE has almost doubled its sales in the last four years and plans to invest in new technologies and products to continue to grow its core business in the coming years," comments IEE CEO Paul Schockmel. In plain English, it is strengthening its software-defined in-cabin sensing technologies, innovative Battery Management Systems (BMS), and intelligent health-related sensing solutions to consolidate its leading position in the sensor sector.
"IEE remains resolutely committed to innovation, creating solutions, and working closely with its customers, suppliers, and public research to support industrial efforts. This collaboration ensures that IEE not only meets the changing demands of the automotive industry but also continues to set standards in technology and innovation," the Bissen-based company stresses in a release, in which it also points out that "IEE and DBG plan to continue their collaboration, building on their shared vision for the future."
IEE had sales of €682.4m by 2023 and announced at the end of the year that it had sold almost 500m sensors. Among the latest developments are sensors capable of detecting the presence of a baby, a subject of tragedies every year.