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Volex PLC on Tuesday said it has acquired the remaining 64% stake of medical product manufacturer Kepler SignalTek Ltd that it does not already own for up to about $90 million, but has halved its share buyback programme as a result. The Hampshire, England-based maker of power and data transmission products said the acquisition strengthens its existing Medical business, which focuses on cable assemblies carrying power and data within medical equipment. KST manufactures patient-connected medical products, including single-use and reusable cables and devices used in patient monitoring, surgical procedures, cardiac therapy and ultrasound imaging. The total consideration is up to $89.4 million on a cash free, debt free basis. This is made up of an initial payment of $74.7 million, with a further deferred cash consideration of up to $14.7 million. This would be payable in two tranches on each of the two anniversaries after completion, subject to KST achieving revenue targets. As a result of the acquisition, Volex has reduced its share buyback programme to £20 million from £40 million, saying its acquisition pipeline ‘remains active’. ‘This demonstrates the company’s discipline in allocating capital to generate returns for its shareholders, whilst maintaining financial flexibility to continue investing in the group’s growth strategy,’ Volex said. In the financial year to the end of March, KST reported revenue of $51.8 million, with 10% organic revenue growth. Volex expects the acquisition to be ‘immediately earnings enhancing’ and to improve its underlying operating margin, as KST’s earnings before interest and tax margin is ahead of Volex’s underlying figure. ‘Volex has been an investor in Kepler SignalTek since Scott Hayden founded the business in 2017, and we have supported its growth at every stage since. We know the business, the team and the customers well, and believe combining with Volex’s global platform is the natural next step,’ said Volex Chief Executive Officer Nat Rothschild. ‘The acquisition extends Volex from manufacturing the cables and assemblies inside medical equipment to supplying the products that connect that equipment to the patient, with limited customer overlap and clear scope to grow together.’ Shares in Volex were up 1.0% at 508.10 pence on Tuesday morning in London. It has a market capitalisation of £940.5 million. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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