Swedish industrial group swoops for systems operator
A Swedish industrial group has acquired Nortech, a Worcestershire tech company that helps monitor and manage water and electricity networks.
Evesham-based Nortech will join Vestum, a Nasdaq-listed company focused on specialist infrastructure technologies across Europe. Vestum, which has annual sales of around SEK 4.3 billion and a market value of around SEK 4 billion, employs 1,500 staff across Scandinavia and the UK.
Nortech supplies a range of products to all UK electricity distribution network operators and is the sole provider of data aggregation software to these companies. It also stands out as the only player in the market offering a hardware-agnostic software platform. Its technology is also used for pumping stations in the water sector.
The acquisition will see Nortech integrated into Vestum’s Flow Technology division.
Simon Göthberg, CEO of Vestum commented: “We are pleased to announce the acquisition of Nortech, which creates a new platform within Vestum’s flow technology segment. Nortech is a market leader, with high market share, in monitoring and control technology in the structurally growing energy and water distribution sector in the UK and has, with over 30 years in the industry, extensive experience in providing innovative products to its customers.”
Julian Brown, managing director, Nortech, added: “We are delighted that Nortech is now part of the Vestum group. Their ‘acquire and hold strategy’, combined with a focus on growing businesses within the infrastructure sector, was what attracted us most to their offer. It’s a great fit for both companies”.
An advisory team at Evolve Corporate Finance, led by Justin Sparks, partner, and Jonathan Wright, partner, provided strategic advice to the shareholders of Nortech, identifying and engaging UK and international strategic parties and negotiating terms to maximise value. Justin and Jonathan were supported by Tom Hammond, director and Daniel McCartney, manager.
HCR Legal provided legal advice to the sellers, led by Alison Scott, a partner in their corporate team and supported by Hyein Ma. Fieldfisher’s corporate team, led by partner Tom Rush with support from Alex Morris, provided legal advice to the buyer. Grant Thornton conducted financial due diligence, while Baringa delivered commercial due diligence services to support the transaction.
Jonathan Wright, partner at Evolve Corporate Finance, commented: “It was a pleasure to support and advise the shareholders of Nortech on this transaction. Our experience, research capabilities, and international network enabled us to find the best global partner with a strong cultural and strategic fit that complemented the business, which was important to our client and the management team. The strategic partnership will enable the existing management team to continue to provide innovative products and solutions to its customers, and we look forward to seeing the Nortech team continue their success story.”
