WELOTEC acquired by WESTERMO
Context
Westermo has acquired Welotec to bolster its capabilities in industrial networks and cutting-edge computing solutions for critical infrastructure. The strategic move aims to combine the complementary expertise of both companies: Westermo's robust industrial communication solutions and Welotec's edge computing technologies. The goal is to provide more integrated solutions for the digitalization of energy and industrial infrastructure, particularly in the automation of electrical substations and production environments. By joining forces, the two companies can now cover both system connectivity and local data processing, two essential building blocks of modern industrial architectures. The acquisition also supports Westermo's international expansion by strengthening its access to European industrial customers and broadening its portfolio of solutions in cybersecurity, edge-to-cloud, and automation. Furthermore, the integration of Welotec is expected to enable the establishment of a dedicated edge computing center of excellence in Germany, while accelerating the development of joint solutions for the energy and industrial manufacturing sectors.
WELOTEC, which reported an EBITDA margin of LOGIN in 2024, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (14.8x).
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Target
Welotec is a German technology company specializing in industrial computing and connectivity solutions for critical environments. The company develops edge computing systems, industrial gateways, and secure communication solutions that connect machines, infrastructure, and control systems. Welotec's business is primarily focused on two key areas: industrial edge computing, which enables data processing at the edge, closest to the equipment, and secure industrial communication infrastructure, used to connect remote sites and automation systems in the energy and manufacturing sectors. The company's client base comprises mainly energy operators, machine tool manufacturers, system integrators, and industrial equipment suppliers. Welotec has a strong presence in use cases related to electrical substations, industrial automation, and distributed data architectures.
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Historical Financials (EUR)
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REFERENCES
Valuation range: EV 20M - 50M EUR
Revenue range: 10M - 30M EUR
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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).
Press release: view release
Target: welotec
Acquirer: westermo