A fund advised by Deutsche Beteiligungs AG agreed to pay an undisclosed sum to purchase a majority stake in electronic components manufacturer Sero Schroder Elektronik Rohrbach Gmbh as part of a management buyout.

DBAG Fund VII, which specializes in management buyouts and middle-market investments, is acquiring the shares from family members of Sero founder Armin Schröder, who will leave the company's management after the deal. The company's management team will remain shareholders.

Deutsche Beteiligungs will provide an additional investment of about €11 million to Sero, which will make up an about 20% stake in the company.

The transaction, which is subject to the approval of competition authorities, is expected to close in November.