Instalco buys Elkontakt for SEK 81M, strengthens its offering within the electrical discipline.

Instalco, a Stockholm, Sweden-based end-to-end industrial solution provider announced getting into an agreement to acquire Elkontakt i Borås AB.

The deal was made for a purchase price of approx. SEK 47M ($5.6M) with a possible earnout of a maximum of SEK 34M ($4M) based on Elkontakt’s result during next year. In the 2016 fiscal year, Elkontakt recorded net sales of approx. SEK 200M ($23.7M).

The transaction is conditional on approval from the Swedish Competition Authority.

Elkontakt, founded in 1999 and led by CEO and founder Rickard Ärlig, has its head office in Borås with operations in Gothenburg, Stockholm, Borås and in the Skåne region. The company, which has about 80 employees, is a complete provider of electrical, telecommunications and data installation services, with specialty expertise in installations at new construction projects, primarily in logistics centres, warehouse and production plants, and apartments.

Instalco, led by CEO Per Sjöstrand, is one of the leading installation companies in the Nordic region, active in the areas of heating, plumbing, electricity, cooling and industrial solutions. The operations are conducted through approximately 30 leading and highly specialised local companies, with the support of a small central organisation. Instalco is listed at Nasdaq Stockholm.