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Kontron expands ownership through strategic acquisitions

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Kontron expands ownership through strategic acquisitions
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Mary Kirby Editor and Publisher | Runway Girl Network

Kontron, the German-based multinational company specializing in embedded computer modules, boards, and systems, has been actively pursuing mergers and acquisitions. Over the past 12 months, Kontron has acquired Telit Cinterion’s cellular automotive IoT product business; Hartmann and W-IE-NE-R, manufacturers of rugged system computing; and a majority stake in German electronics service provider Katek SE.

The company aims to leverage these acquisitions to address supply constraints, reduce time to market, and ensure that Kontron technology is integral to every Kontron system. “This is a big game changer for us,” said Kontron avionics product line manager Yves Beaumont at the Aircraft Interiors Expo in Hamburg.

One significant acquisition from Telit’s automotive division includes 5G cellular modem technology. “They are part of Kontron now. So, we are looking forward to working with them and have our own 5G cellular solution inside our products,” noted Beaumont.

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Strengthening its high-margin segment "Software + Solutions," Hartmann designs modular VPX computing systems for ultra-high-speed environments. “We are currently leveraging that expertise to build our own power solution inside our product,” revealed Beaumont.

Kontron's strategy involves owning all components within its systems. The firm's KPSU (Ku/Ka-band Power Supply Unit), recently selected to power Hanwha Phasor’s multi-beam ESA, exemplifies this approach. “What’s inside it, the server, all of the switches, all of the processing—it’s all Kontron modules,” said Jon Moseley, VP of business development avionics at Kontron.

The acquisition of Katek SE marks the largest transaction in Kontron's history and is expected to significantly contribute to growth as an IoT provider. This acquisition provides Kontron with over 20 manufacturing sites globally. “We are now well positioned also to offer manufacturing services to other companies,” said Beaumont.

This strategy aims at managing supply chains by owning internal components and handling manufacturing. With ongoing supply chain issues highlighted by Airbus’ reduced delivery forecast for 2024, having more control over production is crucial for Kontron.

A key supplier in aviation connectivity projects, Kontron integrates Hughes Network Systems’ JUPITER 3 modem into its Ace Flight 4783-branded MODMAN and supports SES multi-orbit GEO/mPOWER MEO service among others. Additionally, it provides components for Stellar Blu Solutions' Sidewinder ESA and offers its ACE Flight 2780 Auxiliary Modem Unit (AMU) for multi-orbit connectivity.

Kontron works closely with Seamless Air Alliance on standardizing commercial aviation modems through open architecture approaches. A new White Paper from Seamless describes an initiative aimed at enabling diverse software developers' participation in aircraft software marketplaces.

In industries beyond aviation including mobility verticals and IoT sectors, Kontron executives emphasize their enhanced manufacturing capabilities: “You know we’ve got this product that we’re looking to manufacture.”

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