In this Research Note, we examine Nordomatic, the largest independent integrator of open, cloud-based smart building solutions in the Nordic region, based on their 2022 Sustainability & Financial Report, strategic acquisitions and reported goals. This article updates our previous analysis of June 2022.
Founded in 1967 and headquartered in Stockholm, Sweden, Nordomatic AB reported 731 employees and 2022 turnover of SEK 1,280 million (around $124 million). With a presence in Sweden, Denmark and Norway, the group offers full lifecycle capabilities for its customers – from new project integrations, retrofits and upgrades to aftermarket service and support. Its BMS (Building Management System) solutions integrate and manage a building’s heating/cooling, lighting, access control and security as well as fire control.
Order intake and order backlog were at record levels at the end of 2022; order intake grew 36% to 1,362 MSEK from 999 MSEK in 2021. Revenue increased 34% in 2022 to MSEK 1,280, compared to MSEK 952 in 2021. Order backlog at year-end 2022 was 723 MSEK, compared to 618 MSEK in 2021.
Nordomatic’s business delivery model is split between:
- BMS Integration solutions and services: for new buildings or total refurbishments. This represents approximately 36% of total 2022 revenues.
- BMS Upgrade & Service for existing buildings, which represents ca 59% of revenues.
- BMS Managed Cloud Services: Internet of Things and Cloud technologies to connect different parts of the building and provide a managed BMS service. The Smart Cloud business currently represents 5% of Nordomatic’s revenue.
In 2022, the group expanded beyond the Nordic region entering three new markets – UK, Belgium and the Netherlands, as well as augmenting their presence in Norway and acquiring an IoT (Internet of Things) platform in Sweden.
- Spica Technologies, a Birmingham, UK-based provider of digital workplace software and cloud-based technology, which has been deployed in 26 countries.
- Demma Group, a UK building automation systems integrator.
- Y-con, a Dutch BMS provider which also has a presence in Belgium.
- iBESS, a Belgian BMS company with customers throughout Benelux.
- Nortech, an Oslo-based systems integrator of smart building solutions which strengthens their position in Norway.
- Altacogni, the Swedish-based Yanzi Networks IoT platform company.
Nordomatic expanded its Service business and SaaS platforms through the acquisitions of Spica Technologies and Yanzi Networks IoT platform.
Wth more than 1,100,000 connected smart assets and pure SaaS Annual Recurring Revenue of more than SEK 50 million per year, this forms a strong and resilient base coupled with the fast-growing next-generation digital services.
Nordomatic’s strategy to expand its service business has resulted in a more resilient revenue mix. In 2022, the Service & Upgrade and Smart Cloud businesses represent 63% of the total revenue, compared to 59% in 2021.
Nordomatic aims to become a global impact leader in smart buildings, through its value propositions within BMS, Energy and Workplace, addressing the important sustainability challenges ahead. Their strategic goal is to double the size of Nordomatic within 5 years while improving sustainability, competitiveness, attractiveness, profitability, and resilience.
This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.