Mon 24 Jan 2022 | BUSINESS SALE
Thermal power and pumping specialist Spirax-Sarco Engineering has announced it will acquire digital consultancy and optimization firm Cotopaxi in a £13.3m deal, as it is looking to expand its digital strategy.
Acquisition costs represent just over 6 times Cotopaxi’s £2.2 million turnover for the year ending 31 December 2020, down from turnover of 4, £8million before the start of the COVID-19 pandemic.
The transaction will be financed using Spirax-Sarco’s existing cash resources and is expected to close pending the “satisfaction of limited conditions”. After the acquisition, Spirax-Sarco said the target business would be integrated into its specialist steam business, which serves the company’s process steam customers.
According to the acquiring company, this will help them create opportunities to identify and implement new solutions that support steam system availability, waste reduction and increased efficiency. He adds that Cotopaxi will benefit from better market access thanks to the division’s commercial presence in 67 countries.
Created in 2009, Cotopaxi has a team of 38 engineers and IT specialists. The company has a global customer base and offers services such as digital connectivity, consulting and power-intensive process monitoring.
Through its software platform, the company seeks to enable industrial customers to increase efficiency and reduce waste through more efficient management of energy use. The company is currently owned by Business-Intelligence Of Oriental Nations Corporation Ltd.
Commenting on the agreement, Spirax-Sarco Managing Director Nicholas Anderson said: “The business is a great strategic fit for us as we are both focused on improving efficiency and sustainability. the use of process steam.
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