ABB confirms Newave acquisition
ABB is to purchase Newave in a deal worth 56 Swiss francs per share as it looks to improve its uninterruptible power supply capabilities.
Swiss power and automation technology group ABB has announced it is to acquire power supply specialist Newave in a deal worth around 170 million Swiss francs (£117 million).
ABB, which is paying 56 Swiss francs per Newave share, is making the purchase in order to expand its presence in the uninterruptible power supply (UPS) market.
All three of Newave's major shareholders - who hold a total of 45 per cent of voting rights, have agreed to sell their shares under the terms of the public tender offer submitted by ABB, which is likely to have consulted merger and acquisition advisors over the course of the deal.
Head of the Discrete Automation and Motion division at ABB Ulrich Spiesshofer said the deal "will create significant value-driven growth based on innovation, high quality and technology leadership".
Newave, which is also based in Switzerland and brought modular and transformer-less technology to the UPS market, will have the opportunity to grow outside of its traditional European markets as a result of the move.
Posted by Ron Maverick
Source: ABB statement, December 12th