With this acquisition, Deutz is expanding its business and entering the market for military drones, among other things. The aim is to reduce dependence on the traditional diesel business and gain access to a growing defense segment – an area that is considered more stable and higher-margin than the cyclical combustion engine market.
The move was well received on the stock market: Deutz shares rose by more than ten percent to €9.84 at times on Tuesday, making them one of the strongest performers on the SDax. The share price has more than doubled since the beginning of the year.
Technology for drones, motorsports, and medical technology
Sobek develops high-performance electric drives and control electronics for applications in motorsports, aerospace, and medical technology. A particular focus is on drive systems for unmanned aerial vehicles (UAVs), which are primarily in demand from European drone manufacturers.
For Deutz, the acquisition is an important step in the restructuring of the group. With its “Dual+” strategy, the company aims to evolve from a component supplier to a provider of complete drive systems – including software, electronics, and control systems.
Opportunities beyond the military
Sobek's technologies not only open up new opportunities in the defense sector, but also prospects for civilian applications. Potential areas of application range from robotics and infrastructure monitoring to urban air mobility.
“With Sobek, we gain direct access to the growing defense market and lay the foundation for strategically developing it beyond traditional drive systems,” emphasizes Deutz CEO Sebastian Schulte. At the same time, the company wants to further expand its activities in motorsports and medical technology.
Sobek employs around 70 people at three locations in Baden-Württemberg and Hesse. For the current year, the company expects sales in the low to mid double-digit million range. According to Deutz, the operating margin is well into double digits – a profile that also makes the acquisition economically attractive.
“Turning point” as a growth opportunity
Deutz had already announced in the summer that it would be specifically expanding its business in the defense sector. The group expects sales in the double-digit millions for 2025, and management anticipates significant momentum from 2026 onwards. “The turning point is a great opportunity for us,” said Schulte, referring to the realignment of German defense policy following Russia's attack on Ukraine.
Source: https://www.deutz.de/
