Hexatronic to acquire microduct supplier KNET

Nov. 28, 2022
Founded in 2002, KNET has delivered its products to more than 70 countries, with North America, Europe, and Asia its primary markets, in that order.

Hexatronic Group AB says it will continue its recent string of acquisitions with the purchase of KNET Co., Ltd. The Seoul-based company manufactures communications network microducts and will continue to operate as an independent company once the deal closes, a milestone expected this Thursday, December 1. The agreement calls for Hexatronic to pay $48 million in cash for KNET, plus offer up to $15 million in earnouts.

Founded in 2002, KNET has delivered its products to more than 70 countries, with North America, Europe, and Asia its primary markets, in that order. The company operates a manufacturing plant in Jeongeup-si, South Korea, and has offices in the U.S. and Indonesia in addition to its Seoul headquarters. The existing management team, including Founder and Chairman Seo Seong Nam, will continue to run the company post-close.

The earnout Hexatronic will pay will be based on the accumulated EBITDA for the 36-month period post-closing. The seller will receive the full $15 million if KNET achieves an accumulated EBITDA for the 36-month period of more than $63 million. If the accumulated EBITDA for the same period is less than $27 million, no earnout will be paid.

“We are very pleased to have reached an agreement to acquire KNET,” commented Henrik Larsson Lyon, CEO of Hexatronic. “We have been working with the highly skilled team of KNET for more than 10 years and are impressed with the product quality and innovation capabilities. Throughout the years KNET has been an important partner to Hexatronic. Both as a volume supplier managing peaks in demand, but also for products with high technical requirements. The strong support of KNET has been crucial for our strong growth and recent success in North America. Hexatronic is today the largest customer of KNET.”

Shopping spree

The announcement would mark the third acquisition Hexatronic has announced this year. The company also signed deals to buy Rochester Cable and Impact Data Solutions (see "Hexatronic agrees to buy Rochester Cable from TE Connectivity" and “Hexatronic buys Impact Data Solutions from STL”). In the past two years the company also has purchased Data Center Systems, H. Weterings Galgeweg, Qubix, Baltronic Group OÜ and Toronics Inc., and The Light Brigade.

For related articles, visit the Business Topic Center.

For more information on fiber cable and suppliers, visit the Lightwave Buyer’s Guide.

To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.

About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.

Sponsored Recommendations

ON TOPIC: Innovation in Optical Components

July 2, 2024
Lightwave’s latest on-topic eBook, sponsored by Anritsu, will address innovation in optical components. The eBook looks at various topics, including PCIe (Peripheral...

New Optical Wavelength Service Trends

July 1, 2024
Discover how optical wavelength services are reshaping the telecom landscape, driven by rapid expansion and adoption of high-speed connections exceeding 100 Gbps, championed by...

Data Center Network Advances

April 2, 2024
Lightwave’s latest on-topic eBook, which AFL and Henkel sponsor, will address advances in data center technology. The eBook looks at various topics, ranging...

Balanced vs. Unbalanced PON: Key Differences and Deployment Impact

Nov. 7, 2023
Learn how to choose the right PON architecture for your network.