Powel decided to focus on their core businesses of Grid Management Software.
Powel was seeking a safe and permanent home for their metering software business, and knew Lumine could provide that.
On January 1st, 2019, Avance Metering, an energy management and utility software business, joined Lumine Group’s Communications & Media Portfolio. Avance is a divestiture from Powel AS, a Norwegian-based supplier of software to the energy sector in Northern Europe. The company provides solutions to manage smart meters and connected systems for electricity, water, gas, and district heating. Their solutions are used by Distribution and Transmission System Operators to manage utility meters, collect and validate meter data and events, and monitor electricity grids.
The Decision to Sell
The market for meter data collection and management software had advanced since Powel first entered it in the late 1990’s. In early 2018, Powel decided to focus on its core offering of grid and hydro power management systems and exit the metering software business.
Powel CEO Trond Straume recognized the value in the metering software business and what it offered its customers. Trond viewed a divestiture of the business as an opportunity to give the Avance Metering business unit autonomy under an acquirer that provided the right resources to grow the business.
With this in mind, Trond approached Lumine to discuss a potential acquisition of the business, starting the next chapter in the history of Avance Metering.
Enter, Lumine Group
Upon meeting with Lumine, Trond was impressed with the company’s track record and acquisition philosophy.
Lumine Group acquires companies with the purpose of keeping them independent and provides access to capital and a management playbook to create sustained growth. Autonomy is encouraged through a decentralized business model that empowers businesses to make their own day to day decisions. Leaders are given tools to drive their own growth, including access to a global network of leaders, management development opportunities, and benchmark metrics garnered from hundreds of acquisitions
What’s Next: A Secure Future
Straume valued Lumine’s refreshing approach to M&A as a buy and hold forever acquirer. With this philosophy, Lumine treats all acquisitions as long-term investments — a principle of “software for life.”
This principle provides security for customers, knowing that the software won’t be resold to another company in the future. Maintaining transparency with customers and securing the trust of employees was a top priority for Straume, who knew he would have their support with this approach.
Lumine’s commitment to developing and growing acquired companies as standalone businesses by investing in people and customers, gives us the peace of mind that the value Powel has built will be cultivated further for the benefit of all.
– Trond Straume, Former CEO, Powel AS
What’s Next for Avance?
Integration with Lumine is successfully underway, and both teams are looking forward to this next chapter of growth. Using Lumine’s benchmarks and best practices, Avance is focusing on growing its market share and improving the alignment of its product and market strategy.
Avance was acquired by Lumine Group in 2018.
This case study was originally written and published in 2019.