Greensmith Energy Management Systems Inc.
On 3 July 2017, Wärtsilä acquired Greensmith Energy Management Systems Inc.
Greensmith Energy Management Systems Inc. is a market leader in grid-scale energy storage software and integrated solutions. The acquisition of Greensmith enables Wärtsilä to rapidly expand its footprint in the energy storage market globally and position as a premier energy system integrator. Growth in the energy storage market is expanding from the United States to new regions including the United Kingdom, Asia and Australia.
The following tables summarise the preliminary amounts for the consideration paid for Greensmith, the cash flow from the acquisition and the amounts of the assets acquired and liabilities assumed recognised at the acquisition date.
Preliminary consideration MEUR
Consideration transferred 144
Total consideration transferred 144
Preliminary cash flow from the acquisition MEUR
Consideration paid in cash 144
Total cash flow from the acquisition 144
Provisional values of the assets and liabilities arising from the acquisition MEUR
Intangible assets 42
Trade and other receivables 3
Deferred tax assets 2
Total assets 48
Provisions 5
Trade payables and other liabilities 5
Deferred tax liabilities 17
Total liabilities 27
Total net assets 21
Preliminary goodwill 124
The preliminary fair values of acquired identifiable intangible assets at the date of acquisition (including trademark and tehcnology related IP) amounted to EUR 42 million. The fair value of current trade receivables and other receivables is approximately EUR 3 million. The fair value of trade receivables does not include any significant risk.
The preliminary goodwill of EUR 124 million reflects the value of know-how and expertise in grid-scale energy storage and integrated solutions. Wärtsilä foresees that the acquisition will strengthen its position as an energy system integrator as well as support growth strategy improving Wärtsilä's offering and services towards customers.
During 2017 the Group incurred acquisition-related costs of EUR 1 million related to external legal fees and due diligence costs. The costs have been included in the other operating expenses in the condensed statement of income.
Pro forma
If the acquisition had occurred on 1 January 2017, management estimates that consolidated net sales would have been EUR 3,483 million. The impact in the consolidated operating result would not have been significant. In determining these amounts, management has assumed that the fair value adjustments, which arose on the date of acquisition would have been the same if the acquisition had occurred on 1 January 2017.


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