Norway’s Eltek ASA will acquire Texas-based Valere Power Inc. in a cash and stock deal that could be worth as much as $130 million, Eltek said.
Eltek is a telecom energy systems supplier and Valere is an AC/DC power system company. The combined company will be the second largest provider of DC power systems in the world with revenue of $500 million, the two said.
The deal is expected to close during the second quarter.
Valere Power was founded in 2001 and the company’s 2006 revenue was $88 million. The acquisition more than doubles Eltek Energy’s revenue in the U.S. market, the company said. Verizon Communications Inc. and AT&T Inc. are among Valere customers.
The company will be called Eltek Valere and will be headquartered in the Dallas-Fort Worth area. It will have more than 1,300 employees with sales in 100 countries and operations in 25 countries.
Valere President and CEO Andy Marsh will be the CEO of the new company and Valere CFO Ken Vines also will retain that role. Current Eltek CEO Knut Aven will become vice president of international telecom sales.
“Valere’s first five years were an exciting combination of fast growth and achieving our goal to be the industry leader in innovation and customer service. Now we have a great opportunity to build on that foundation, expand our product development and sales capabilities and set our sights on leading the industry in market share as well,” Marsh said. “I am grateful to the Valere team for its hard work during this time and excited about what lies ahead for all of us.”
Medici Corporate and UBS Investment Bank advised Eltek on the deal and Credit Suisse was Valere’s adviser.
Eltek ASA www.eltek.com
Valere Power www.valerepower.com
