Astorg Partners drops $436M for smart card firm

Astorg Partners has acquired the Microconnections division of FCI Group in an agreement that will close by the end of October this year.

Microconnections is a manufacturer of flexible tape material for smart cards. These flexible printed circuits are used in several applications such as SIM cards for mobile phones, banking and e-ID cards and many more. Other products being developed include connectors for medical sensors and LED bulbs.

The acquisition by Astorg will be financed with a buy-out debt of about $436 million (?320 million). As the case in most of its portfolio companies, Astorg will propose a broad employee shareholding scheme. The selection of Astorg by FCI and its shareholder Bain Capital follows a competitive process designed to identify the best possible partner for the Microconnections division. With more than ?2 billion of assets, Astorg is one of the most active private equity firms in Europe.

"Being part of Astorg's portfolio will definitely open up increased opportunities for Microconnections to expand into new markets," stated Pierre Vareille, CEO at FCI. "Within the FCI context, Microconnections has been operating autonomously. As a standalone company, Microconnections will capitalize on its key assets and focus on further growth."

"We have supported the rapid growth of Microconnections over the past five years and invested heavily in the technological innovations it has brought to its customers. The company is very well positioned to continue on this strong trajectory," noted Walid Sarkis, managing director at Bain Capital.