Information on the Target

Endress+Hauser has recently acquired full ownership of CodeWrights GmbH, a software company based in Karlsruhe, Germany. Previously, Endress+Hauser owned two-thirds of the shares, while Pepperl+Fuchs held the remaining third. This acquisition, effective from July 1, 2025, marks the culmination of a long-standing partnership that began when CodeWrights was established in 2002 as a joint venture between the two companies. With a workforce of approximately 50 employees, CodeWrights specializes in developing tailored software solutions for the measurement and automation technology sectors.

CodeWrights is recognized for its innovative offerings, which include applications for industrial automation, cloud-based solutions, and embedded software designed for various devices. This strong portfolio has not only facilitated the company's profitable growth but also solidified its reputation as a reliable software development partner within the industry.

Industry Overview in Germany

The measurement and automation technology industry in Germany represents a crucial segment of the country's economy. Renowned for its advanced engineering capabilities, Germany is home to a diverse array of companies operating in this field, including leaders in measurement, control, and automation solutions. The industry benefits from a strong focus on quality and innovation, supported by a robust research and development infrastructure.

In recent years, the demand for automation and smart solutions has surged, driven by the increasing trend towards digitalization in manufacturing processes across various sectors. German companies have embraced Industry 4.0 principles, integrating advanced technologies such as IoT and AI into their operational frameworks, which has led to improved efficiency and productivity.

The German government has also played an active role in fostering this industry through initiatives that promote technological advancement and support start-ups. The growing emphasis on sustainability further propels the demand for innovative solutions that minimize environmental impact while maximizing operational efficiency.

As a result, the measurement and automation sector in Germany is expected to experience sustained growth, providing ample opportunities for companies like CodeWrights to expand and enhance their service offerings in alignment with market trends.

The Rationale Behind the Deal

Endress+Hauser's decision to acquire the remaining shares of CodeWrights stems from a strategic objective to consolidate ownership and streamline its operational capabilities. With full ownership, Endress+Hauser aims to strengthen its commitment to developing and enhancing its product and service offerings in the automation technology space.

This acquisition not only eliminates any complexities related to co-ownership but also enables more agile decision-making. By reinforcing the unity of leadership and vision within CodeWrights, Endress+Hauser anticipates heightened growth opportunities and the potential to leverage new technologies more effectively in response to market demands.

Information about the Investor

Endress+Hauser is a globally recognized leader in measurement and automation technology, with a specialized focus on the Industrial Internet of Things (IIoT). Founded in Switzerland, the company has built a strong presence worldwide, offering a wide range of innovative solutions designed to optimize processes in various industries, including oil and gas, chemicals, water, and food and beverage.

With a commitment to research and development, Endress+Hauser consistently invests in technology advancements that ensure its clients benefit from the most efficient and accurate measurement solutions available. The company's extensive experience and industry expertise position it well to drive the future growth of CodeWrights and ensure the ongoing success of their collaborative efforts.

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From an investment perspective, the acquisition of CodeWrights by Endress+Hauser appears to be a sound strategic move. By bringing CodeWrights fully under its umbrella, Endress+Hauser not only simplifies its operational structure but also reinforces its foothold in the growing automation technology market.

The decision to consolidate ownership allows Endress+Hauser to fully align the product development and operational strategies of CodeWrights with its own business goals, leading to potentially enhanced service offerings and innovation in software solutions. This strategic alignment is likely to enhance long-term value and profitability.

Moreover, as the demand for automation solutions continues to escalate, fueled by trends such as digital transformation and increased efficiency requirements, CodeWrights is well-positioned to capitalize on these developments. Endress+Hauser's commitment to investing in the company's growth will likely yield positive outcomes in both market share and revenue.

In conclusion, this acquisition not only seems to strengthen Endress+Hauser’s operational capabilities but also solidifies its competitive position in the rapidly evolving landscape of measurement and automation technology, marking a promising pathway for future growth.

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