This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.
Nordomatic, the Nordic region’s largest independent building management systems (BMS) integrator has been acquired by a new majority owner. Trill Impact is a private equity firm targeting mid-sized companies in Northern Europe with the potential to accelerate value creation while contributing to UN Sustainable Development Goals. Nordomatic’s services and products actively contribute to reducing energy consumption and improving indoor climate for property owners. As a leader in Impact Private Equity, Trill Impact is endeavouring to support Nordomatic’s continued expansion and accelerate the company’s impact footprint.
According to data from the European Commission 2030 Climate & Energy Framework, buildings represent 40% of the EU’s energy consumption and 36% of CO2 emissions. Trill Impact believes that Nordomatic’s solutions can provide a significant lever for improvements in these areas. As almost 75% of the building stock is energy inefficient, intelligent BMS systems can make a significant positive impact.
Founded in 1967 and headquartered in Johanneshov, Sweden, Nordomatic currently has over 400 employees. Its former majority stakeholder, Adelis invested in Nordomatic in 2016 and during the private equity firm’s ownership, Nordomatic tripled revenues from around SEK 290 million to SEK 880 million ($91.5 million). Around 30% of revenues originate from outside Sweden.
With a presence in Sweden, Denmark and Norway, Nordomatic offers full life-cycle capabilities for its customers – from new project integrations, retrofits and upgrades to aftermarket service and support. Its BMS solutions integrate and manage a building’s heating/cooling, lighting, access control and security as well as fire control.
In May 2020, Nordomatic announced that the group was speeding up their planned transition to focus on the end-customer market for Smart Buildings. This strategic change involved further investment in energy optimization services, focusing on projects that bring recurring revenues and which enable the business to develop ongoing end-customer relationships. In metropolitan areas, the transition also led to a reduction of about 10% of their staff.
Together with their technology partners, Nordomatic intends to focus on upgrades, service agreements, spot services, cloud and energy services, due to the changed picture in the new construction market, which is also being accelerated by the ongoing COVID-19 pandemic.
In February 2020, as a new EcoExpert Partner for Schneider Electric, Nordomatic announced that it would offer its customers the EcoStruxure Building Operations building automation system.
Nordomatic has also augmented its energy software and services offering through acquisitions.
Kabona, a Swedish energy efficiency specialist with an estimated $15.5 million revenues, enhanced the group’s service portfolio in March 2018. Ecopilot, a provider of intelligent energy management software for building optimization with an estimated $37.5 million in revenues, was acquired in September 2019 from Bemsiq AB, part of Latour Industries.
The software has been installed by more than 300 customers who are currently saving between 10% and 40% of their energy bills and are reducing CO2 emissions by more than 10,000 tonnes per year. 60% of Sweden's largest Real Estate owners have installed Ecopilot. Recent deployments include projects for IKEA Aalborg, Denmark, Westminster College, London, UK and projects in Norway and Canada.
For the past decade, Nordomatic has pursued an aggressive expansion strategy completing 13 acquisitions to further strengthen its value proposition and successfully gain market share in the Nordics. The firm is well positioned as a leading Smart Buildings specialist in the region.