THEON Acquires Germany's Kappa Optronics for €75 Million to Boost Electro-Optics Capabilities

In a major move to expand its presence in the defence technology sector, THEON International Plc has announced the acquisition of 100% of Kappa Optronics GmbH, a highly specialized German company known for its advanced aviation and land optronics solutions. The deal, valued at €75 million, marks THEON’s fourth defence industry investment in Germany and strengthens its position in the fast-growing electro-optics domain.

Founded in 1978 and based in Göttingen, Germany, Kappa Optronics has carved out a solid reputation in defence mobility and autonomous platforms, with a particular focus on research and development. The company operates with a highly skilled team of around 200 employees across Germany, the U.S., and Spain.

Kappa is expected to exceed €37 million in revenue and generate €8 million in EBITDA for the fiscal year 2025, according to projections. Its advanced infrastructure and minimal capital needs make it an ideal fit for THEON’s growth strategy, especially as the acquisition will be funded by a combination of debt and IPO proceeds.

Importantly, Kappa’s existing management team will remain in place, motivated by a performance-based incentive plan aimed at driving further expansion. The deal still awaits regulatory approval but has already been backed by key financial and legal advisors, including PwC and Bird & Bird.

This acquisition is expected to significantly boost THEON’s top-line growth while preserving strong profit margins. THEON has indicated that its FY 2026 financial guidance, due in October, will include contributions from this acquisition along with the impact of current tender bids.

In a statement, Christian Hadjiminas, THEON’s Founder and CEO, said, “We are delighted to welcome Kappa Optronics to the THEON Group. This deal strengthens our German footprint, opens new doors in Spain, broadens our electro-optics product range, and most importantly, brings a powerful R&D engine into our ecosystem.”

He also emphasized the strategic benefits of the acquisition: “KAPPA brings not only cutting-edge technology but also a culture of innovation that aligns with our vision. We expect meaningful product synergies, accelerated co-development, and cross-group knowledge sharing.”

Sebastian Vreemann, CEO of Kappa, echoed this optimism, calling the acquisition an “exciting new chapter” for the company. “This partnership strengthens our growth trajectory, deepens our access to defence and aerospace markets, and supercharges our R&D collaboration with THEON,” he said.

With this acquisition, THEON not only adds valuable technology and talent to its portfolio but also reinforces its ambition to become a global leader in electro-optics and defence innovation, while keeping a strong focus on sustainable and scalable growth.