In a strategic move to boost its presence in the German defence sector, Amsterdam-based Theon has acquired Kappa Optronics, a German company known for its high-performance optical and electronic systems used in land and air defence applications. The deal is valued at €75 million and is being financed through a blend of debt and equity raised on the public markets.

Kappa Optronics, headquartered in Germany and employing around 200 staff, is projected to achieve €37 million in revenue and an EBITDA of €8 million in the current fiscal year. The company’s leadership team will remain in place to ensure operational continuity and integration.

According to Kappa CEO Sebastian Vreemann, the two firms are well aligned in terms of corporate culture and long-term vision, which he believes will pave the way for productive collaboration and growth in the defence sector.

Theon stated that it will update its 2026 financial guidance in October, factoring in the acquisition as well as the outcome of several ongoing defence procurement processes. The move underlines Theon’s ambition to scale its operations and broaden its technological capabilities in Europe’s growing defence market.