When was ESCO acquired by SANDVIK?

ESCO was acquired by SANDVIK in 2023.

What was the revenue of ESCO at the time of the deal?

The revenue of ESCO at the time of the deal is estimated to be in the range of 5M - 25M SEK.

How is the data for the ESCO acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the ESCO deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://www.home.sandvik/en/news-and-media/news/2023/11/sandvik-completes-the-acquisition-of-software-supplier-esco-gmbh/

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Home Database TMT (Tech, Media, Telecom)ESCO

10/2023

ESCO acquired by SANDVIK

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

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 in 2022, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (15.3x).

-> Deep-dive in TMT (Tech, Media, Telecom) market trends

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

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (SEK)

Year

Rev

EBITDA

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2022

2021

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REFERENCES

Revenue range: 5M - 25M SEK

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