mynth
04/2025

WELOTEC acquired by WESTERMO

GERMANY Hardware & Electronics / IT Equipment / IoT & Connected Objects EV 20M - 50M EUR

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 in 2024, 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 (15.1x).

-> 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

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (EUR)

Year
Rev
EBITDA
EBIT
2024
2023

Similar deals in Hardware & Electronics

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
07/2025NAZCA CAPITALTELTRONICSPAINIT Equipment
06/2025TRITON PARTNERSKEENFINITYGERMANYIT Equipment
01/2025DISCOVERIE GROUPBURSTER GROUPGERMANYSensors & Optics
12/2024TAGMASTERQUERCUS TECHNOLOGIESSPAINIoT & Connected Objects
10/2024AMETEKVIRTEK VISIONCANADASensors & Optics
09/2024BALMORAL FUNDSXIRGO TECHNOLOGIESUNITED STATESSensors & Optics
09/2024QUALCOMMSEQUANS COMMUNICATIONSFRANCESemiconductors
09/2024SomacisAT&S KoreaKOREA, SOUTHElectronic Components
08/2024BAIN CAPITALSomacisITALYElectronic Components
07/2024SomacisDYCONEXSWITZERLANDSemiconductors

REFERENCES

Valuation range: EV 20M - 50M EUR

Revenue range: 10M - 30M EUR

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