THEON acquires Germany-based Kappa Optronics to expand its electro-optics portfolio and European presence

M&A THEON acquires Germany-based Kappa Optronics to expand its electro-optics portfolio and European presence

2025-08-07 Source: Press release 1 min Reading Time

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THEON International has announced the acquisition of Kappa Optronics GmbH, a German specialist in platform-based aviation and land optronics. The €75 million transaction marks THEON’s fourth consecutive investment in Germany’s defense sector and is expected to strengthen both its product pipeline and footprint across Europe.

KAPPA’s Quadbox DVE module: a rugged, quad‑camera Driver Vision Enhancer (DVE) unit designed to deliver day‑and‑night situational awareness for armoured and unmanned platforms. (Bild: KAPPA Optronic) — KAPPA’s Quadbox DVE module: a rugged, quad‑camera Driver Vision Enhancer (DVE) unit designed to deliver day‑and‑night situational awareness for armoured and unmanned platforms.
(Bild: KAPPA Optronic)

THEON International Plc revealed it will acquire 100% of Kappa Optronics GmbH for an enterprise value of €75 million. The acquisition is financed through a combination of IPO proceeds and debt. KAPPA, headquartered in Göttingen, Germany, is known for its engineering-driven, asset-light model focused on optronics for airborne and ground platforms.

Founded in 1978, KAPPA operates with around 200 employees, including 60 engineers, across Germany, Spain, and the United States. In FY 2025, the company is on track to exceed €37 million in revenue and €8 million in EBITDA, driven largely by programs in defense mobility and autonomous systems. The company’s infrastructure and management will remain in place, and no major capital expenditures are expected beyond current guidance.

Theon emphasized strategic synergies in the acquisition, citing the expansion of its electro-optics offerings, enhanced R&D capacity, and broader access to EU and NATO markets—especially Spain, where it plans to localize future THEON product manufacturing. The move also follows THEON’s previous acquisitions of German firms Harder Digital and Andres Industries, as well as the establishment of its Wetzlar plant under a joint venture with Hensoldt.

THEON has committed to issuing updated FY 2026 guidance by October, once the integration of KAPPA and the outcomes of several pending tenders are clearer.

European industrial strength at the core of defence resilience: civilian technologies, precision engineering, and smart manufacturing are shaping tomorrow’s security – made in Europe. (Bild: https://pixabay.com/de/illustrations/flagge-europ%C3%A4ischen-union-brexit-1198978/)

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Date: 08.12.2025

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