HMS Industrial Networks Acquires eWON SA

HMS Industrial Networks AB, a wholly owned subsidiary of HMS Networks AB), has signed an agreement to acquire all of the shares of the Belgium-based company eWON SA - an IIoT (Industrial Internet of Things) player and provider of intelligent Internet-based remote access routers. The purchase price amounts to EUR 30 million on a cash-free/debt-free basis, to be paid in a combination of cash and shares in HMS Networks AB.

eWON, founded in 2001, is headquartered in Nivelles, Belgium. With subsidiaries in the USA and Japan, eWON offers communication products and services for industrial applications, such as for remote access to programmable logic controllers (PLCs), data collection applications and cloud-based routing software.  eWON is a fast-growing player in the market for intelligent Internet-based remote access routers.  The company employs 57 people

With this acquisition, HMS looks to become a market leader in providing remote access and remote monitoring within the industrial communications market. eWON's position on the European and US markets is expected to widen HMS' customer base and provide a stronger footprint on the market for remote management of PLCs.  The acquisition gives HMS access to a successful distribution network in Europe and North America and adds around 15 development engineers to HMS' total R&D resources. The extended R&D resources are expected to increase flexibility generating opportunities to develop new solutions in the area of remote management.  

The acquisition is expected to be completed on 5 February 2016 on which date 60 per cent of the shares in eWON will be acquired directly from the sellers - Serge Bassem and Pierre Crokaert - and 40 per cent of the shares will be acquired indirectly through the acquisition of all of the shares in FAR SPRL, a Belgian limited liability company, whose only business activity is the holding of shares in eWON.  eWON will be consolidated into the HMS Group as of 1 February 2016.  Serge Bassem and Pierre Crokaert, the two company founders, will continue to lead eWON in their current roles.

In 2014, eWON and its subsidiaries had net sales of EUR 12.3 million. In 2015, based on eWON's preliminary accounts for 2015, eWON had net sales of approximately EUR 15.3 million.

HMS Networks AB will publish its Financial Report 2015 on 5 February 2016.

Keywords: Cloud-Based Routing Software, IIoT (Industrial Internet of Things), Industrial Communications, Internet-Based Remote Access Routers, Industrial Applications, ARC Advisory Group.