Cherry SE has announced the initiation of an M&A process for the potential divestment of one of its two core business segments as part of broader financial restructuring efforts. The international manufacturer is considering selling either its Digital Health & Solutions segment or its Peripherals segment. This strategic decision comes as the company continues to face financial flexibility constraints despite previously implemented restructuring measures.
The Digital Health & Solutions segment includes e-health terminals, mobile devices, firmware, software and cloud solutions such as TI-M or TMS. The Peripherals segment encompasses a comprehensive product portfolio ranging from gaming devices to office, industrial, and security peripherals. According to the company announcement, the liquidity generated from any potential sale would be used to reduce liabilities and provide the remaining business with sufficient financial resources to finance its growth plans.
The Management Board emphasized that this move is necessary to address ongoing financial challenges while positioning the company for future success. The company will provide further details about the M&A plans during its virtual extraordinary general meeting scheduled for tomorrow at 2 p.m. CET. During this meeting, the Management Board will also explain the circumstances that led to a loss amounting to half of Cherry SE's registered share capital. Investors and stakeholders can access additional information through the company's investor relations portal at https://ir.cherry.de/en/.
This divestment process represents a significant strategic shift for Cherry SE, which has operated both business segments as core components of its operations. The decision reflects the company's need to streamline operations and strengthen its financial position in a competitive market environment. The outcome of this M&A process could substantially reshape Cherry SE's business focus and market positioning going forward, potentially altering the company's fundamental operational structure and strategic direction in the global marketplace.
