THEON International acquires 60% stake in Harder Digital for EUR 34 million

This transaction allows THEON to vertically integrate by bringing in-house a crucial component of its Night Vision product line, enhancing its operational security and flexibility. In addition, the acquisition gives THEON access to niche technologies that will support the development of new products through enhanced in-house research and development capabilities.

THEON’s acquisition of Harder Digital aligns with its strategic priorities outlined during its IPO process. The move comes at a critical time as global geopolitical conflicts have placed a strain on the supply and demand for Night Vision technology. Despite the acquisition, THEON will continue to maintain strong partnerships with other European and US IIT manufacturers, ensuring no competition with IITs produced by its existing suppliers.

The €34 million cash injection will be used to upgrade Harder Digital’s production facilities, primarily in Germany and Latvia, and to increase the capacity of its third-generation IIT manufacturing lines. The remaining funds will be used to financially restructure the company. Harder Digital, currently operating below full capacity, aims to achieve €17 million in sales with a 10% EBITDA margin by 2024, with plans to triple sales by 2028.

THEON currently purchases nearly 50% of Harder Digital’s output, a trend expected to continue post-acquisition. The remaining production will continue to be sold to third parties.

The acquisition is subject to regulatory approval and is expected to be finalised in the fourth quarter of 2024. The deal will be financed entirely with available cash, deployed over a two-year period.

Christian Hadjiminas, CEO and founder of THEON, expressed his enthusiasm for the acquisition: “This acquisition marks a significant step in our inorganic growth strategy, strengthening our presence in key markets like Germany and the Baltic region. We look forward to welcoming Harder Digital to the THEON family and continuing our global expansion.”

Established in 1999, Harder Digital exports its IIT products to over 30 countries globally and operates subsidiaries in Germany, Serbia, and Latvia.