Weather intelligence software provider StormGeo has agreed a deal to sell the company to maritime technology firm Alfa Laval for NOK 3.63 billion (approx. US$440 million), as Alfa Laval looks to accelerate its digital services offering and add new functionality to its decarbonisation technology portfolio.
Alfa Laval is headquartered in Lund, Sweden, with 16,700 employees globally. The company serves the Food & Water, Energy and Marine industries and is listed on the Swedish stock exchange.
“The acquisition of StormGeo will be a strong addition to our toolbox of solutions that help our customers address the decarbonisation challenge in the industry,” said Tom Erixon, President and CEO of Alfa Laval.
“Furthermore, StormGeo fits excellently to our digital acceleration ambition, and we will use their digital and customer experience to level up our offerings and to get deeper experience in the digital space.”
StormGeo provides weather-centric services to some 2,200 customers globally in a variety of industries, including shipping and energy, as well as onshore sectors such as healthcare, hospitality, insurance and retail.
Since 2018, StormGeo says it has helped its shipping customers to save 2.1 million MT in fuel, thereby reducing CO2 emissions by 6.2 million MT, or the equivalent of removing 1.3 million cars from the road for one year.
The purchase agreement is on a debt and cash free basis, with the transaction expected to close during Q2 2021, subject to customary conditions. StormGeo will become part of Alfa Laval’s Marine Business Division following completion of the deal.
“Joining Alfa Laval, a world-leading industrial owner, benefits StormGeo by developing our business through increased geographic and technological expansion,” said Søren Andersen, StormGeo CEO.
“By investing even more into developing leading software and SaaS products, we enable our customers to improve efficiency and reduce their carbon emissions while keeping their people, assets and operations safe from increasingly extreme weather.”
Alfa Laval is acquiring the company from private equity firm EQT, which bought StormGeo in 2014 in a deal which also saw DNV take an initial stake of 24% in the business (increased to 27% shortly afterward). DNV would later go on to consolidate its existing fleet management software business under the StormGeo banner in 2019.