ABB buys Swiss UPS firm for £117m
ABB is buying the Swiss UPS (uninterruptible power supply) manufacturer Newave for CHF 170m (£117m) in cash, and plans to integrate it into its Discrete Automation and Motion division.
The division’s head, Ulrich Spiesshofer (above), says that the acquisition is in line with ABB’s strategy to strengthen its position in power control and quality, and with the division’s aim to build on its strengths in power electronics. “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,” he adds.
In 2010, Newave generated a net income of CHF 8.1m (£5.6m) on sales worth CHF 80.6m (£55.5m). Newave specialises in medium and high-power UPSs, which represent about half of the UPS market, with sales growing by 6–10% a year. The acquisition will allow ABB to target a market worth $6–7bn and to close a gap in its portfolio for industrial power quality and data centre electrification.
The deal follows the failure of ABB’s £864m bid to buy Chloride’s UPS business in 2010.