Verdane sells Powernet to Efore in deal worth up to €6m

The company's purchase price on a cash and debt-free basis is €4.5m. Additionally, the parties have agreed to a maximum earn-out of €1.5m, which will be determined by Powernet's consolidated sales margin for the 2019 financial year.

In addition to Verdane's stake, Efore will acquire the remaining holding owned by minority shareholders and become the company's sole owner.

However, the acquisition of Powernet is conditional upon Efore receiving sufficient proceeds from the rights offering launched by the company, which will take place by the end of the year.

According to a statement, the acquisition will further strengthen Efore's technical expertise, broaden its customer base and product offering, and support its international expansion.

Previous funding
Eqvitec acquired a majority stake in Powernet in 2008 via its third fund, with management maintaining a significant minority holding.

Verdane then acquired Eqvitec Technology Fund III and its portfolio companies, which included Powernet, from Eqvitec in 2011. The deal was made through Verdane Capital VII and followed the GP's 2010 acquisition of Eqvitec Technology Fund II.

Company
Established in 1992 and headquartered in Vantaa, Powernet develops and manufactures power supplies and systems for the northern and central European markets. The company employs 30 staff and generated EBITDA of €900,000 from revenues of €9.7m in 2017.

People
Efore – Jorma Wiitakorpi (CEO).

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