Avance Metering Acquisition Case Study

Background

On January 1st, 2019, Avance Metering, an energy management and utility software business, joined Lumine Group’s Communications & Media Portfolio. Avance is a divestiture from Powel AS, a Norwegian-based supplier of software to the energy sector in Northern Europe. The company provides solutions to manage smart meters and connected systems for electricity, water, gas, and district heating. Their solutions are used by Distribution and Transmission System Operators to manage utility meters, collect and validate meter data and events, and monitor electricity grids.

The Decision to Sell

The market for meter data collection and management software had advanced since Powel first entered it in the late 1990’s. In early 2018, Powel decided to focus on its core offering of grid and hydro power management systems and exit the metering software business.

Powel CEO Trond Straume recognized the value in the metering software business and what it offered its customers. Trond viewed a divestiture of the business as an opportunity to give the Avance Metering business unit autonomy under an acquirer that provided the right resources to grow the business.

With this in mind, Trond approached Lumine to discuss a potential acquisition of the business, starting the next chapter in the history of Avance Metering.

Enter, Lumine Group

Upon meeting with Lumine, Trond was impressed with the company’s track record and acquisition philosophy.

Lumine Group acquires companies with the purpose of keeping them independent and provides access to capital and a management playbook to create sustained growth. Autonomy is encouraged through a decentralized business model that empowers businesses to make their own day to day decisions. Leaders are given tools to drive their own growth, including access to a global network of leaders, management development opportunities, and benchmark metrics garnered from hundreds of acquisitions.