NOTE AB, a Swedish contract electronics manufacturer of PCBAs, subassemblies and box build products, announced on Friday that it has acquired 100% of STI Enterprises Holdings Limited, strengthening its position in the defence sector and expanding its Security & Defence segment.

STI is a UK-based manufacturer of mission-critical electronic solutions for the defence industry with operations across air, land, cyber and marine domains, and production sites in Hook and Poynton.

The business is expected to generate approximately GBP60m (approximately SEK750m) in revenue in 2026, with profitability in line with NOTE and a workforce of around 300 employees. The purchase price is GBP72.5m on a cash- and debt-free basis, financed through SEK900m in credit facilities from SEB, of which SEK400m matures within 12 months.

NOTE confirmed its full-year 2026 outlook, maintaining expectations of a weaker start followed by gradual improvement, now incorporating the acquisition. STI is projected to contribute approximately SEK550-600m in revenue during the remainder of the year, with a full-year operating margin of 9.5-10.5%.

For the first quarter, NOTE expects net sales of SEK930-960m, including an estimated SEK20m contribution from STI, and an underlying operating margin of 8.5-9.0%. The company reported a strong financial position, with an equity ratio of around 50% at year-end 2025 and expectations of continued strong operating cash flow in 2026.