Austin electronics maker buys Wisconsin manufacturer

Jan 10, 2014
Austin American Statesman

Austin-based electronics maker VirTex Enterprises said Thursday it has acquired Wisconsin-based manufacturer MTI Electronics


VirTex, which has about 100 employees in Austin, makes a wide range of electronics products and prototypes for other companies. Founded in 1999, the company does product design and manufacturing, along with manufacturing supply chain management and fulfillment services. MTI Electronics does similar work, with specialization in the automotive, defense and aerospace, medical and homeland security sectors, VirTex officials said


“MTI Electronics’ customer base and focus is very complimentary to that of VirTex,” said VirTex CEO Brad Heath. “In MTI, there is a tremendous opportunity to cross-sell services and leverage the smart sourcing concept that VirTex has pioneered with its Austin and Juarez facilities.”


Heath said VirTex had been looking at MTI Electronics, which is based near Milwaukee, for several years as a possible acquisition


“We were looking to get some bandwidth up in this region, in the Midwest, because we like a lot of what’s going on here — we like the work ethic, we like the people,” he said


The purchase, along with VirTex’s existing facilities in Austin and Juarez, Mexico, “cuts a really nice swath through the center of the U.S., which makes it really convenient to do business anywhere,” Heath said


MTI Electronics, which has about 100 employees, will become a wholly owned subsidiary of VirTex. “There are no planned changes to the operating entity or personnel. It’s business as usual for MTI’s customers,” Heath said. “Both companies can learn from one another in terms of operations and efficiency.”


VirTex had close to $30 million in revenue last year, Heath said. He said the acquisition will put the company at over $50 million in annual revenue


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