The acquisition will significantly expand ABB's product and service offerings, especially for renewables original equipment manufacturers (OEMs) and end users. It includes key electrical products for power conversion, such as Doubly-fed Induction Generator (DFIG) wind converters, industrial battery energy storage systems (BESS), and utility-scale solar power inverters. The deal will also bring over 100 highly specialized engineers and two converter factories in Madrid and Valencia under ABB's wing, adding around 400 employees to its global workforce, including key personnel in India, China, the U.S., and Australia.

The power electronics business of Gamesa Electric reported revenues of around 170 million euros for the fiscal year that ended on September 30th, 2024.

The International Energy Agency estimates that global renewable capacity additions will continue to increase every year, reaching almost 940 GW annually by 2030 from 666 GW in 2024, based on existing policies and market conditions. Solar PV and wind together are expected to account for 95 percent of all renewable capacity growth through the end of this decade.

The acquisition also aims to increase ABB’s serviceable power conversion installed base with the addition of around 40 GW, leveraging ABB’s global organization to access new service, modernization and repower opportunities. The deep domain expertise of the Gamesa Electric team will also help increase the scope of ABB’s digital offering. In addition, ABB plans to enter into a supply and services agreement with Siemens Gamesa.

Chris Poynter, President of ABB’s System Drives division, said, “This targeted acquisition is in line with our commitments to grow our portfolio for high-power renewable applications and support productivity in a low-carbon world. It will expand our engineering depth for power conversion and grid connection and will add significant opportunity to service a large installed base.

With the acquisition of this business we will be much better positioned to capitalize on the expansion of the power conversion market for renewables while building on our relationship with Siemens Gamesa as a key customer.”

ABB is a leading global technology company. Its business areas include electrification, process automation, motion (drives and motors) and robotics & discrete automation.

The heavy electrical equipment maker’s net profit (from continuing operations) jumped 21.68% to Rs 440.47 crore on 5.16% rise in total revenue from operations to Rs 2,912.16 crore in Q3 CY24 over Q2 CY23.

The scrip slipped 3.14% to Rs 7,415.40 on the BSE.