ABB Acquires Newave to Broaden UPS Offering

ABB and Newave Energy Holding, a Switzerland based supplier of uninterruptible power supplies (UPS), have agreed that ABB will acquire Newave in an all-cash transaction valued at approximately CHF 170 million (US$181 million). The deal is aimed at strengthening ABB's position in the power control and quality market and providing Newave with significant growth opportunities outside its traditional markets in Europe.

Newave  generated a net income of CHF 8.1 Million on sales of CHF 80.6 Million in 2010. The company was founded in 1993 and went public in 2007. Newave has established a strong market position in Europe as a manufacturer of UPS systems, 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 the company's Quartino HQ in Switzerland to become a main location for ABB's UPS systems. ABB, in turn, will look to provide a fast, global exposure for Newave's UPS systems and will ensure that Newave can increase the high innovation rate of its current product range.

“The combination of two strong, complementary companies will create significant value-driven growth based on innovation, high quality and technology leadership,'' said Ulrich Spiesshofer, head of ABB's Discrete Automation and Motion division.

 “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. 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.”

According to ABB, the global UPS market offers interesting growth opportunities, mainly in the areas of datacenters, industry and infrastructure. ABB will expand into a US$6 billion to $7 billion market and close a white spot in core datacenter electrification and industrial power quality.

Newave is active in the medium- and high-power UPS range, which is the most attractive segment since it represents 50 percent of the overall UPS market with a yearly growth rate of six to 10 percent. ABB has a strong presence in industrial markets and already offers industrial UPS products. It recently acquired a majority share in the DC datacenter solution provider Validus.

Combining ABB's and Newave's market presence and technological expertise, says ABB, will allow it to offer a complete range of UPS solutions to industrial, commercial and datacenter clients with a comprehensive AC and DC solutions portfolio, reinforcing its strategic differentiation.