Cherry SE Launches M&A Process for Potential Business Segment Divestment

Cherry SE announced that it has decided to initiate an M&A process for the potential divestment of one of its two business segments, either Digital Health & Solutions or Peripherals. The Digital Health & Solutions segment comprises e-health terminals, mobile devices, firmware, software and cloud solutions such as TI-M or TMS, while the Peripherals segment consists of a comprehensive product portfolio ranging from gaming devices to office, industrial, and security peripherals.

The background to the Management Board's decision is the continuing constraints on financial flexibility despite the restructuring measures already implemented. The liquidity generated from the sale is intended to be used to reduce liabilities and provide the remaining part of the business with sufficient financial resources to finance its growth plans. This strategic move represents a significant restructuring of the company's business portfolio as it seeks to optimize its operations and financial position.

Tomorrow at 2 p.m. CET, Cherry SE will hold its virtual extraordinary general meeting where the Management Board will explain the circumstances that led to a loss amounting to half of Cherry SE's registered share capital, as well as provide further details on the aforementioned M&A plans. The company maintains its investor relations information at https://ir.cherry.de/en/ where stakeholders can access corporate updates and financial information. The decision to potentially divest a major business segment comes as the company navigates challenging market conditions and seeks to strengthen its financial foundation for future growth initiatives in its remaining operations.