INNEOVA Holdings Limited Strengthens Engineering Capabilities and Accelerates Growth in Sustainable Solutions with the Acquisition of INNEOVA Engineering Pte. Ltd.

Rhea-AI Summary

INNEOVA Holdings has completed the acquisition of INNEOVA Engineering, marking a strategic expansion of its engineering and sustainable solutions capabilities. This Singapore-based company, recently rebranded from SAG Holdings, aims to strengthen its position beyond automotive and industrial spare parts distribution.

The company reported revenues of $59.5 million for FY2023, with revenue split between On-Highway (45.1%) and Off-Highway Business (54.8%). The acquisition, approved by shareholders on March 31, 2025, enhances INNEOVA's ability to provide full-chain solutions from components supply to engineering integration.

Building on its 2019 expansion into life science environmental sector, where it supplies air filtration systems to hospitals, INNEOVA is positioning itself to capitalize on growing demand for sustainable engineering solutions. The merger is expected to create significant synergies and expand service offerings in engineering and green technologies.

Positive

• Strategic acquisition of INNEOVA Engineering expands service offerings and engineering capabilities
• Revenue of $59.5M reported for FY2023 with balanced revenue mix between On-Highway (45.1%) and Off-Highway (54.8%) segments
• Successful expansion into life science environmental sector since 2019 with hospital contracts
• Diversification into full-chain solutions from parts supply to engineering and systems integration
• Shareholder approval received for acquisition and corporate rebranding

Negative

• Related party transaction raises potential conflict of interest concerns
• Acquisition costs and integration expenses not disclosed
• No mention of INNEOVA Engineering's financial performance or acquisition price

Insights

Financial Analyst

INNEOVA's acquisition of Engineering division strengthens capabilities, extends value chain, and accelerates diversification into sustainable technologies.

This acquisition represents a strategic expansion for INNEOVA Holdings (Nasdaq: INEO), transforming from a parts distributor to a provider of comprehensive end-to-end solutions. The company is extending its capabilities beyond its existing INNEOVA Automotive and INNEOVA Industrial divisions, which currently focus on distributing spare parts and combustion engines.

The financial context shows INNEOVA reported $59.5 million in revenue for FY2023, with a balanced mix between On-Highway (45.1%) and Off-Highway (54.8%) segments. While the press release doesn't disclose the acquisition cost, it notes this was a related party transaction that received proper governance oversight—including shareholder approval, special committee review, and independent financial valuation.

This move builds upon INNEOVA's previous diversification into the life science environmental sector in 2019, where it supplied and maintained indoor air filtration systems for government hospitals. The Engineering acquisition allows INNEOVA to capture more value across the supply chain by offering not just components but also customized engineering solutions and systems integration.

The strategic focus on sustainable engineering solutions positions INNEOVA to address growing market demand for green technologies, particularly in electrification and energy efficiency. This three-pillar structure (Automotive, Industrial, and now Engineering) creates potential synergies across divisions while opening new revenue opportunities beyond traditional parts distribution.

Industrial Engineering Specialist

Acquisition creates vertical integration from components to engineering services, strategically positioning INNEOVA in sustainable technology solutions.

This acquisition strategically transforms INNEOVA's business model from component distribution to a full-service engineering solutions provider. By integrating INNEOVA Engineering, the company creates a vertically integrated structure that spans the entire value chain—from critical parts supply to customized engineering services and systems integration.

The technical significance lies in how this structure enables INNEOVA to deliver more sophisticated solutions in electrification, energy efficiency, and system lifecycle analysis. This capability expansion addresses the increasingly complex requirements in both on-highway (automotive) and off-highway (industrial) applications, where sustainability considerations are becoming paramount.

INNEOVA's existing experience in the environmental sector, specifically with air filtration systems for healthcare facilities since 2019, provides a foundation for this expanded sustainable technology focus. The engineering capabilities acquired enable the company to develop more comprehensive solutions leveraging their established components expertise.

This three-pillar integration (Automotive, Industrial, and Engineering) represents a forward-looking approach that balances current market needs with emerging technologies. Rather than abandoning their traditional combustion engine components business, INNEOVA is using it as a platform to build engineering capabilities that can support both legacy systems and green technology transitions. This balanced approach helps mitigate transition risks while positioning for growth in sustainable engineering solutions.

SINGAPORE, April 30, 2025 (GLOBE NEWSWIRE) -- INNEOVA Holdings Limited (Nasdaq: INEO, "INNEOVA Holdings" or the "Company" or the "Group"), a leading Singapore-based provider of high-quality Original Equipment Manufacturer ("OEM"), third-party branded and in-house branded replacement parts for motor vehicles and non-vehicle combustion engines, today announced that it has completed the acquisition of INNEOVA Engineering Pte. Ltd. ("INNEOVA Engineering"), a Singapore-based engineering solutions provider.

This strategic acquisition represents a significant milestone in INNEOVA Holdings' transformation strategy, following the Company's recent corporate rebranding from SAG Holdings Limited to INNEOVA Holdings Limited. The acquisition strengthens the Company's commitment to scaling its engineering capabilities, expanding into green technologies, and delivering innovative, high-impact solutions across on- and off-highway industries.

The acquisition of INNEOVA Engineering is expected to significantly extend INNEOVA Holdings' capabilities beyond its existing divisions—INNEOVA Automotive and INNEOVA Industrial—which currently specialize in the distribution of on-highway and off-highway spare parts, consumables, and combustion engines. With the addition of INNEOVA Engineering, the Group is now positioned to accelerate its diversification into offering a comprehensive, full-chain solution—from critical components supply to customized engineering and systems integration. This strategic expansion allows INNEOVA Holdings to serve a broader spectrum of industries with deeper, end-to-end value creation. With these three pillars working in synergy, INNEOVA Holdings is ready to drive meaningful progress in electrification, energy efficiency, and system lifecycle analysis for our customers worldwide.”

The acquisition, which constituted a related party transaction, received shareholder approval at the Company's Extraordinary General Meeting (EGM) on March 31, 2025, alongside the approval of the Company's name change. The transaction was thoroughly reviewed by a special committee of the Company's Audit Committee members, supported by an independent financial adviser's valuation report.

INNEOVA Holdings reported revenues of $59.5 million for the financial year ended December 31, 2023, with a balanced revenue mix between its On-Highway Business (45.1%) and Off-Highway Business (54.8%). Integrating INNEOVA Engineering is expected to create significant synergies and expand the Company's service offerings, particularly in engineering solutions and sustainable technologies.

This acquisition builds upon the Company's successful expansion into the life science environmental sector in 2019, where it has been working with government hospitals to supply, install, and maintain indoor air filtration systems. With INNEOVA Engineering's additional expertise, the Company believes it is well-positioned to capitalize on the growing demand for sustainable engineering solutions.

About INNEOVA Engineering

INNEOVA Engineering Pte. Ltd. is a Singapore-based provider of turnkey engineering solutions for key sectors, including transport, healthcare, defense, utilities, and facility management. Renowned for its innovation and sustainability focus, the Company delivers integrated services—such as cooling and flow management systems and fleet maintenance—that improve energy efficiency, optimize performance, and extend asset life. As demand for resilient infrastructure grows, INNEOVA Engineering is well-positioned to drive long-term value through smarter, more sustainable operations.

About INNEOVA Holdings

INNEOVA Holdings (formerly known as SAG Holdings Limited) is a leading Singapore-based provider of high-quality Original Equipment Manufacturer ("OEM"), third-party branded, and in-house branded replacement parts for motor vehicles and non-vehicle combustion engines.

On-Highway Division: We provide an extensive range of genuine OEM and aftermarket parts for passenger vehicles, trucks, and buses. Our offerings include parts from manufacturers' brands, trusted third-party labels, and our in-house brands.

Off-Highway Division: Catering to industries like construction, marine, power generation, mining, and transportation, we offer specialized spare parts focusing on filtration systems, lubricants, batteries, and internal combustion engine components.

Our unwavering commitment to quality seeks to ensure that our customers experience maximum uptime, enhanced performance, and reduced total cost of ownership throughout the lifecycle of their machines. For more information, visit https://www.inneova.co.      

Safe Harbor Statement

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include but are not limited to, statements relating to the expected trading commencement and closing dates. The words “anticipate,” “believe,” “seeks,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the preliminary prospectus filed with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and INNEOVA Holdings Limited specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

Ivy Lee / Jamie Neo
INNEOVA Holdings Limited
Tel: +65 6383 7540
Email: ir@inneova.co

FAQ

What is INNEOVA Holdings' (INEO) acquisition of INNEOVA Engineering in 2025?

INNEOVA Holdings acquired INNEOVA Engineering, a Singapore-based engineering solutions provider, to strengthen its engineering capabilities and expand into green technologies. The acquisition was completed on April 30, 2025, after receiving shareholder approval on March 31, 2025.

How much revenue did INNEOVA Holdings (INEO) generate in 2023?

INNEOVA Holdings reported revenues of $59.5 million for the financial year ended December 31, 2023, with 45.1% from On-Highway Business and 54.8% from Off-Highway Business.

What are the main business divisions of INNEOVA Holdings (INEO) after the 2025 acquisition?

INNEOVA Holdings now operates through three main divisions: INNEOVA Automotive (on-highway), INNEOVA Industrial (off-highway), and INNEOVA Engineering, offering comprehensive solutions from parts distribution to engineering services.

How will INNEOVA Engineering acquisition impact INNEOVA Holdings' (INEO) business?

The acquisition will expand INNEOVA Holdings' capabilities beyond parts distribution to include customized engineering and systems integration, particularly in electrification, energy efficiency, and sustainable technologies.

What is INNEOVA Holdings' (INEO) experience in sustainable solutions?

Since 2019, INNEOVA Holdings has been active in the life science environmental sector, working with government hospitals to supply, install, and maintain indoor air filtration systems.