Redeye provides a brief comment on Ependion’s acquisition of German company Welotec. Through the acquisition, Ependion will gain a stronger position in the energy segment and also add complementary technology within Edge Computing. So, in our view, a good strategic fit. Welotec has shown healthy growth and profitability, and the purchase price of EUR35.2m (excl. earn-outs) corresponds to EV/EBIT just below 11x, which is lower than Ependion itself. The deal will partly be financed through a directed share issue. All and all, we believe Welotec could make an important contribution to Ependion’s future growth and we find the purchase price to be fair, although not a bargain.
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