Sell-Side | Edge Computing: ARTHOS Advises Welotec on its Sale to Ependion

Accessing global sales channels to accelerate Welotec’s growth strategy in the Edge Computing
Shareholders and management of Welotec, a leading German Edge Computing company, engaged ARTHOS to seek a strategic buyer with a strong global sales network to accelerate its international growth strategy.

ARTHOS berät Welotec beim Verkauf an Ependion

Exclusive Financial Advisor
in the Sell-Side M&A Process

ARTHOS served as the exclusive financial advisor to the owners of Welotec throughout the entire sell-side M&A process. This included:

  • The strategic advisory
  • Analysis and outreach to potential national and international strategic partners
  • Finalization of the key financial terms in a Letter of Intent (LOI)
  • Execution of the M&A process, including coordination of the due diligence and commercial contract negotiations through to a successful closing
Arno Paetzold Contact Image

Arno Pätzold

Managing Partner ARTHOS
Expert in Sensors, Automation, Semiconductor & Photonics

arno.paetzold@arthos.de Linkedin

The Transaction: Welotec has been Acquired by Ependion

Westermo, a business entity of Ependion, has entered into an agreement to acquire all shares in Welotec, headquartered in Laer, Germany. Through this transaction, Westermo strengthens its position in the rapidly growing energy segment and gains access to complementary new technology within Edge Computing. To partially finance the purchase price of MEUR 35.2, the Annual General Meeting on 13 May will be proposed to authorise the Board to decide on a directed share issue of approximately MSEK 300. A performance-based earn-out of up to MEUR 14.8 may be paid based on the company’s performance in 2025-2026.

Our Client: Welotec, Laer, Germany

Welotec specialises in solutions within Edge Computing and provides robust and certified industrial computers on which customers can run applications such as real-time optimisation, cybersecurity, and virtualisation. This contributes to increased digitalisation of substations in power grids, for example. Welotec also works with digitalisation solutions for industrial automation. Its customers are leading energy companies, international system integrators, and machine builders. The offering includes both hardware and software.

“For Welotec, Westermo is an ideal home. We operate in the same markets and have similar corporate cultures. Access to Westermo’s sales channels and global network enhances our opportunities to reach our ambitious growth agenda. At the same time, our strong customer base within energy can increase Westermo’s opportunities to win new business,” says Reinhard Lülff, CEO of Welotec.

Welotec has grown by an average of 12 percent per year since 2020. For the full year 2024, turnover amounted to approximately MEUR 24 with an operating margin of 13.4 percent. The company has around seventy employees.

Strategic Partner: Westermo from Ependion, Malmö, Sweden

“It is particularly gratifying to make a deal with such strong strategic logic: Westermo steps into a new yet closely related technology area – Edge Computing – and accelerates growth in the energy segment, while there is potential for significant sales synergies when the businesses are combined. Welotec is a well-managed and profitable growth company that will become Westermo’s technology centre within Edge Computing,” says Jenny Sjödahl, CEO and Group President of Ependion.

The ongoing electrification and increasing share of renewable energy are driving investments in modern and flexible power grids worldwide, resulting in the digitalisation of substations and other equipment at an increasing rate. Global investments in grid infrastructure are expected to triple by 2050 compared to current levels, according to McKinsey Global Energy Perspective 2024.

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