In a move to strengthen its position in the power control market, ABB will pay $181.4 million (CHF 170 million) to purchase Newave Energy Holding SA, a Switzerland based uninterruptible power supply (UPS) provider.
Quartino, Switzerland-based Newave started up in 1993 and went public in 2007. Newave has a strong presence in Europe with a focus on the development and production of power protection technology, as well as on technical consultancy, maintenance and service packages. ABB plans to integrate Newave in its Discrete Automation and Motion division and develop Quartino to become a main location for ABB’s UPS systems.
“The acquisition is fully in line with ABB’s strategy for power control and quality and with the goal of the division to build on its existing strength in power electronics,” said Ulrich Spiesshofer, head of ABB’s Discrete Automation and Motion division. “Newave provides us a best-in-class player in the fast-growing UPS market, while our global sales channels will significantly expand Newave’s geographic reach.”
“Combining our business with ABB will give Newave important strategic and operational advantages,” said Newave’s Chairman Vllaznim Xhiha. “Besides the immediate financial added value of the offer for the shareholders, we also expect considerable additional development potential for Newave’s business partners and its employees.”
There is a growth area in the global UPS market, mainly in the datacenter, industry and infrastructure areas.
ABB will expand into a $6 billion to $7 billion market and close a hole in core datacenter electrification and industrial power quality. Newave is active in the medium- and high-power UPS range, which represents 50 percent of the overall UPS market with a yearly growth rate of 6 to 10 percent.
This move enhances ABB’s offerings in the UPS market. It just acquired a majority share in the DC datacenter solution provider Validus. Combining ABB and Newave will allow the tandem to offer a range of UPS solutions to industrial, commercial and datacenter clients.
Last month ABB unveiled a deal for Aussie-based Powercorp, a renewable power automation company.
Darwin based Powercorp employs 30 people and offers automation and intelligent control solutions to manage renewable energy generation in isolated grids, ensuring utility grade power quality and grid stability. This enables very high levels of wind and solar power penetration into isolated diesel powered grids, thus reducing emissions and dependency on fossil fuel.