Advent International is exploring a takeover offer for U-blox Holding AG in a deal that could value the Swiss localisation chipmaker at more than CHF 1bn ($1.2bn), according to people familiar with the matter cited by Bloomberg.

An announcement could be made within days, though sources cautioned that talks are ongoing and may not lead to a transaction. News of the potential deal sent U-blox shares up as much as 19% on Friday, their largest intraday gain since August 2022, giving the company a market capitalisation of over $1.2bn. The stock has risen 78% so far this year.

The move comes as private equity firms step up acquisitions of publicly listed European companies perceived as undervalued. Advent has been active in the region, making offers for London-listed Spectris Plc and Italy’s Tinexta SpA. While it withdrew from a bidding war for Spectris, it recently agreed with Nextalia to acquire a stake in Tinexta with plans to delist the business.

U-blox develops chips and modules for localisation technologies used in automotive, consumer electronics, autonomous machinery, and drones. Earlier this year, it completed the sale of its loss-making cellular business. CEO Stephan Zizala has said the company’s focus is now on “automated driving and mobile robotics.”

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