ABB has acquired Finland-based Netcontrol, a provider of electrical grid automation for power utilities and critical infrastructure operators.

As electrification accelerates and the energy transition progresses, grids are under pressure from rising demand, more renewables and extreme weather. With electricity expected to reach 50 per cent of global energy use by 2050, grids must become smarter and digitalised.

ABB’s electrification portfolio combined with Netcontrol’s grid automation should help in the journey to digitalise the power grid. Headquartered in Helsinki, Netcontrol has around 100 employees. It was founded in 1991 and is currently owned by Procuritas Partners, a Swedish private equity fund.

“The electrical grid is becoming the bottleneck of the energy transition,” said Adrian Guggisberg, division president at ABB Distribution. “The expansion of electricity and grid upgrades are key to energy resilience and ensure that the world has enough power available for growing populations and industries. As we add renewable sources and new consumers, like electric vehicles and heat pumps, connecting everything reliably becomes more and more challenging. Utilities need digitalisation and automation to keep the grid stable, resilient and flexible. Acquiring Netcontrol is a strong fit supporting our grid automation portfolio expansion and a useful step forward to help our customers outrun.”

Once the deal closes, Netcontrol’s products and services are expected to be integrated into ABB’s Distribution’s portfolio and offered through its global sales channels.

“Joining ABB marks an exciting next stage in our company’s journey,” said Sami Kurunsaari, CEO of Netcontrol. “Our customers rely on us for secure, reliable electrical grid automation and close technical collaboration. Becoming part of ABB will give us the global scale, portfolio and reach to bring our technology and expertise to many more utilities and industrial customers, while continuing to invest in the products and services our existing customers know and trust.”

Swiss firm ABB (www.abb.com) specialises in electrification and automation. The company has 140 years of history and around 110,000 employees worldwide.

Netcontrol (www.netcontrol.com) provides grid automation technology, specialising in the control and monitoring of energy distribution systems. The company is headquartered in Helsinki, Finland.

The transaction is expected to close this quarter, subject to regulatory approvals and customary closing conditions. Financial terms were not disclosed.