congatec to Acquire Majority Stake in JUMPtec
congatec signs term sheet to invest in JUMPtec, optimizing global embedded COM production and operations through Kontron's manufacturing capabilities.
www.kontron.com
Kontron and congatec GmbH, a leading provider of embedded and edge computing technology, have signed a term sheet according to which congatec would acquire a majority stake in Kontron subsidiary JUMPtec by means of a capital increase. The term sheet sets out the outlines of such an investment, which have not yet been finalised.
As already announced on May 14, 2025, Kontron and congatec, a portfolio company of DBAG (Deutsche Beteiligungs AG) Fund VIII, have started a manufacturer cooperation for Computer-on-Modules (COM) and have entered into talks about congatec's equity investment in jumptec. For reasons of efficient transaction design, congatec filed a cartel notification in Germany and Austria last week, although no final agreement and contract documentation has yet been reached.
If the implementation is successful, congatec will acquire a majority stake in JUMPtec and Kontron America Modules, LLC. Kontron could probably realize a profit in the higher double-digit million range as part of the deconsolidation. The exact amount cannot yet be estimated at the current stage of negotiations. JUMPtec generated approximately EUR 90 million in 2024. The finalisation of the contract negotiations could be expected in the next few weeks.
The Kontron subsidiary JUMPtec GmbH and congatec GmbH, a wholly owned subsidiary of Deutsche Beteiligungs AG, are developers of COMs for embedded computing (COMexpress, COM-HPC, SMARC, Q7). In mid-May, the two companies already agreed on an agreement to intensify cooperation, with the Kontron Group to take over supply chain management, production and logistics for the fabless congatec Group.
Due to the similarity of the COM modules and higher volumes, both Kontron and congatec expect cost advantages and will be able to actively manage the effects of the current fluid tariff development, especially in the USA, due to Kontron's production facilities there. This development is also the result of congatec's strategy of pursuing a local-for-local approach for geopolitical reasons in view of international trade and growing customer demand. On the one hand, Kontron will be able to make better use of its production facilities and, on the other hand, it will be able to draw on a broader technological portfolio of joint participation in its system products.
Both companies are known for the highest quality standards and a broad and innovative technology roadmap with powerful partnerships with Intel, AMD, Qualcomm and NXP.
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