Efore Completes Acquisition of Shares of Powernet International

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Efore Plc has completed the acquisition of the entire share capital of Powernet International Oy, a company specializing in the development and manufacture of customer specific power supplies and systems. The acquisition further shifts Efore’s focus towards higher value-added products and solutions. Efore’s Systems business and Powernet form a strong platform based on Finnish know-how dating back years, on which Efore can build new and growing business.

Starting in 2019, Efore’s Systems business and Powernet International Oy will form a new business line in the Industrial business area. Powernet’s current CEO Heikki Viika will be nominated as the executive vice president of the new business line and he will be a member of the Efore group management team.

Powernet, founded in 1992, develops and manufactures customer specific power supplies and systems. Examples include customized power supply and power distribution packages as well as turnkey project deliveries to the train industry and others. Powernet has also been a forerunner in the development of IoT enabled condition monitoring of power supply and power distribution packages, which is utilized in applications such as smart battery chargers. Well recognized especially in the North and Central Europe, Powernet has 30 employees. In financial year 2017 Powernet's turnover was EUR 9.7 million and EBITDA EUR 0.9 million.

The purchase price on a cash and debt free basis (enterprise value) is EUR 4.5 million and the purchase price for the shares at closing of the transaction is EUR 2.5 million. Additionally, the parties have agreed on an earn-out. The maximum amount of the earn-out is EUR 1.5 million and may be paid based on Powernet Group’s consolidated sales margin for financial year 2019.