NOTE acquires leading UK defence EMS provider STI
Key Takeaways
- NOTE has acquired STI Enterprises Holdings Limited, enhancing its position in the UK defence electronics manufacturing sector.
- STI brings extensive experience in EMS, serving major defence domains such as Air, Land, Cyber, and Marine.
- The acquisition is expected to generate revenues of approximately GBP 60 million by 2026, supporting long-term growth in defence.
- Leadership views STI as a strategic addition to NOTE, strengthening customer relationships and technological capabilities.
- The purchase price for STI amounts to GBP 72.5 million, financed through SEK 900 million in credit facilities.
NOTE has acquired 100% of the shares in STI Enterprises Holdings Limited (“STI”), the UK’s leading manufacturer of advanced and mission-critical electronic solutions for the defence industry.
This strategic acquisition significantly strengthens NOTE’s position within the Security & Defence segment and marks a major expansion of its UK electronics manufacturing (EMS) footprint.
Strengthening NOTE’s position in defence electronics manufacturing
STI is a well-established electronics manufacturing services (EMS) partner with long-standing customer relationships and extensive experience supporting leading global defence companies.
The business operates across all major defence domains:
- Air
- Land
- Cyber
- Marine
STI runs two high-technology production sites in Hook and Poynton, delivering advanced capabilities including:
- PCBA (printed circuit board assembly)
- Box build and system integration
- Advanced testing for high-reliability applications
These capabilities strengthen NOTE’s ability to deliver end-to-end electronics manufacturing solutions for mission-critical and high-reliability programmes.
Financial performance and growth outlook
STI is expected to generate revenues of approximately GBP 60 million (~SEK 750 million) in 2026, supported by a strong order book.
- Profitability is in line with NOTE’s existing operations
- Approximately 300 employees will join NOTE
- The acquisition supports long-term, sustainable growth within the defence sector
Leadership commentary on the acquisition
“STI is a strategic acquisition for NOTE. The company has a unique position as a leading EMS partner in the UK and complements our existing operations in an exceptional way. Their technological capabilities and strong customer relationships within defence strengthen our offering and create significant growth opportunities. We look forward to continuing to build a strong European player with long-term sustainable growth,” says Johannes Lind-Widestam, President and CEO, NOTE.
“We are very proud of what STI has achieved in recent years and of the strong trust we have built with leading defence customers. Becoming part of NOTE gives us a strong platform to accelerate our growth, broaden our offering and strengthen our position in the UK and international defence industries. I am delighted to join NOTE and feel privileged to lead STI’s dedicated team into our next phase, where we invest in growth together with some of the largest defence primes and OEMs,” says Tom Garvey, CEO of STI.
Transaction details
The purchase price amounts to GBP 72.5 million on a cash- and debt-free basis, corresponding to an adjusted EV/EBITDA multiple of approximately 10x.
The acquisition is financed through credit facilities obtained from SEB totalling SEK 900 million, of which SEK 400 million falls due within 12 months.
Expanding NOTE’s UK and European EMS capabilities
The acquisition of STI reinforces NOTE’s strategy to grow within high-reliability electronics manufacturing, particularly in defence and other mission-critical sectors.
By combining STI’s specialist defence expertise with NOTE’s end-to-end manufacturing capabilities – from prototyping and sourcing through to manufacturing, testing and lifecycle support – NOTE is well positioned to support complex, high-reliability programmes across the UK and Europe.