Welotec acquired by Westermo

GERMANY Hardware & Electronics / IT Equipment / IoT & Connected Objects EV €20–50M

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 [members only] in 2024, 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 (14.8x in 2025).

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

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.

Ent. Value

€20–50M

Equity Value

[members only]

Multiples

EV / Revenue

1x–3x

EV / EBITDA

[members only]

EV / EBIT

[members only]

Historical Financials (EUR)

Year

Rev

EBITDA

EBIT

2024

2023

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REFERENCES

Valuation range: EV €20–50M

Revenue range: €10–30M

EV/Revenue range: 1x - 3x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of Welotec by Westermo 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.

Press release: view release

Target: welotec

Acquirer: westermo

FAQ

What transaction does this page cover?

This page covers Westermo’s acquisition of 100% of Welotec, a German company specialised in IT Equipment, in 2025.

How was the acquisition of Welotec by Westermo valued, and what multiples were paid?

mynth displays the transaction’s enterprise value within the €20–50M band and its EV/revenue multiple within the 1x - 3x range. Exact figures are available to members.

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

At the time of the transaction, Welotec’s annual revenue was estimated within the €10–30M range (FY 2024). Detailed financial figures are available to members.

How does the valuation of Welotec 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 14.8x EBITDA during 2025.

What sources support the information on this transaction?

Information on this transaction is sourced from the official corporate announcement published by the parties, corroborated by a private document shared by the community and verified by the mynth team to ensure the accuracy of the shared information.

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