Esco acquired by Sandvik

GERMANY Software / Supply Chain & Ops REV SEK 5–25M

Context

The transaction involves the 100% acquisition of esco GmbH by Sandvik AB, integrating the target's specialized power skiving software into the acquirer’s Manufacturing and Machining Solutions division. This strategic acquisition is driven by the increasing shift toward electrification in the automotive sector, which is fundamentally changing manufacturing requirements for gears. Power skiving has emerged as a high-growth premium niche technology that provides superior productivity and flexibility compared to conventional machining methods, enabling significantly reduced cycle times. The integration allows the acquirer to bolster its portfolio with critical digital capabilities that directly support the design, production, and quality inspection of components essential for electric vehicle drivetrains.

Esco, which reported an EBITDA margin of [members only] in 2022, is valued in this transaction at an EV/EBITDA multiple of [members only], to compare with the average observed in the TMT (Tech, Media, Telecom) sector (15.3x in 2023).

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Target

Esco GmbH is a specialized engineering consulting and software provider focused on the niche domain of power skiving and gear machining. Founded in 1993, the firm offers advanced software solutions that optimize design, production, and quality inspection workflows for gear manufacturing. The company’s primary value proposition lies in its ability to support highly precise manufacturing processes through technological expertise, addressing the critical needs of the gear machining industry. Its solutions are designed to enhance productivity and flexibility in a market that demands reduced cycle times and high-tolerance components.

Ent. Value

[members only]

Equity Value

[members only]

Multiples

EV / Revenue

[members only]

EV / EBITDA

[members only]

EV / EBIT

[members only]

Historical Financials (SEK)

Year

Rev

EBITDA

EBIT

2022

2021

Other operations with Sandvik

Other operations with Sandvik
Date	Acquirer	Target	Country	Sector
07/2018	SANDVIK	METROLOGIC GROUP	FRANCE	Supply Chain & Ops

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REFERENCES

Revenue range: REV SEK 5–25M

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of Esco by Sandvik are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: esco

Acquirer: sandvik

FAQ

What transaction does this page cover?

This page covers Sandvik’s acquisition of 100% of Esco, a German company specialised in Supply Chain & Ops, in 2023.

What was Esco’s revenue at the time of the deal?

At the time of the transaction, Esco’s annual revenue was estimated within the SEK 5–25M range (FY 2022). Detailed financial figures are available to members.

How does the valuation of Esco compare to benchmarks in the TMT (Tech, Media, Telecom) sector?

Transaction multiples for this specific deal are exclusively reserved for mynth members. Nevertheless, transactions tracked by mynth in this sector reveal an average benchmark multiple of 15.3x EBITDA during 2023.

What sources support the information on this transaction?

The details of this transaction are sourced directly from the official corporate announcement published on the parties’ institutional website, ensuring primary-source verification of the closing and perimeter.

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