Target Overview

Landis+Gyr (SIX:LAND), a prominent global provider of integrated energy management solutions, has recently entered into a share purchase agreement with KD Group for the divestiture of its EV Solutions business, formerly known as Etrel. This strategic move offers a sustainable pathway forward, ensuring the continued operation and support of the business for employees, customers, and partners alike.

As part of its ongoing exit strategy from the electric vehicle (EV) charging sector in the EMEA region, Landis+Gyr has focused on facilitating the best possible outcome for the EV Solutions business. The agreement with KD Group not only secures the future of the business but also guarantees the employees, customer contracts, and service commitments will be maintained under the new ownership.

Industry Overview in Slovenia

The Slovenian market for electric vehicle charging solutions is experiencing significant growth, driven by increasing government initiatives aimed at promoting sustainable mobility. With ambitious targets set for reducing carbon emissions, Slovenia's regulatory framework supports the installation of EV infrastructure throughout the country.

Slovenia is becoming a technology hub within the EMEA region, particularly in the e-mobility sector. Local enterprises, backed by both public and private investments, are expanding their capabilities in electric mobility and infrastructure development. This growth is further supported by Slovenia's strategic location in Central Europe, facilitating cross-border trade in technological innovations.

As the demand for electric vehicles rises, coupled with advancements in battery technology and renewable energy sources, the charging infrastructure sector in Slovenia is poised for long-term expansion. Various stakeholders, including government bodies, private investors, and technology firms, are collaborating to create a robust ecosystem that fosters the growth of EV solutions.

The country's commitment to sustainability not only enhances its appeal to investors but also positions Slovenia as a key player in the global e-mobility market. As awareness of environmental issues increases among consumers, the push for more efficient and accessible charging stations is critical for supporting the widespread adoption of electric vehicles.

Rationale Behind the Deal

The deal between Landis+Gyr and KD Group represents a strategic decision aimed at ensuring the sustainable growth of the EV Solutions business. By divesting this segment, Landis+Gyr can concentrate on its core competencies in integrated energy management, while KD Group can leverage its expertise in financial management to nurture and advance the EV Solutions business.

This transition not only allows for continued innovation in the e-mobility space but also secures jobs and existing customer contracts, thereby facilitating a seamless operation under new ownership. The agreement showcases Landis+Gyr's commitment to maintaining operational continuity for its stakeholders while pursuing core strategic goals.

Investor Information

KD Group is a well-established financial and investment management firm based in Slovenia, known for its strategic foresight and impactful investments. The company has a legacy of expertise in asset management, insurance, and financial services, which positions it uniquely to foster sustainable growth in the businesses it acquires.

By emphasizing long-term value creation and operational improvements, KD Group aims to enhance the EV Solutions business's market position. Their focus on supporting local entrepreneurship and innovation mirrors Slovenia's aspirations to be a leader in advanced technologies, especially within the e-mobility sector.

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The acquisition of the EV Solutions business by KD Group is viewed positively as it aligns well with current market trends and demands for sustainable e-mobility solutions. From an investment perspective, the deal stands to provide KD Group with a solid foundation upon which to build and expand the acquired business.

Given the growing emphasis on environmental sustainability and the increasing adoption of electric vehicles globally, this acquisition allows KD Group to tap into a burgeoning market with substantial growth potential. Their strategic investment in the EV Solutions business signals confidence in the unit's ability to innovate and meet future demands.

Moreover, the commitment demonstrated by both parties to ensure a smooth transition and operational continuity is a critical factor for success. This thoughtful approach not only supports the existing workforce but also enhances customer trust in the new ownership structure.

Overall, this acquisition is poised to be a beneficial move for both KD Group, as they pursue growth in the e-mobility landscape, and for the Ecosystem of providers and stakeholders engaged in Slovenia’s substantial shift towards sustainability.

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