Translation: Original published in Finnish on 12/22/2025 at 7:00 am EET.

Solwers announced on Friday its second acquisition within 24 hours, as its Swedish subsidiary WiseGate AB agreed to acquire the entire share capital of Odigo Consulting AB. The acquired company is very profitable and strengthens Solwers' foothold in industrial consulting in Southern Sweden. The acquisition supports our earnings forecasts but increases the already high debt relative to the group's earnings capacity at the bottom of the cycle. If the earnings improvement we forecast for the company has begun to materialize, there are good reasons for increased M&A activity, but better visibility on this and the acquisition prices will only be available in the Q4 report. We remind investors that the current balance sheet cannot withstand an earnings deterioration, which keeps the stock's risks elevated. Based on this information, we are neutral on the announced acquisitions, and they do not affect our view of the company. 

Strengthening industrial consulting in Southern Sweden

Solwers' subsidiary WiseGate AB acquires Sweden-based Odigo Consulting AB, and the company will be integrated into WiseGate, reporting to the Solwers Group as of December 1, 2025. Odigo specializes in technical services for the manufacturing and process industries, operating primarily in the Blekinge and Skåne regions of Southern Sweden. The company's customer base includes well-known industrial companies such as Saab Kockums and NKT, and it is also a certified partner of Universal Robots. Founded in 2012, Odigo employs 18 people. Its revenue for the financial year ending in June 2025 was 23.9 MSEK (~2.1 MEUR) and its operating profit was 3.0 MSEK (~0.26 MEUR).

A profitable addition to the portfolio

This was Solwers' second acquisition announcement in a short period, as the company previously announced its first acquisition in Poland. The acquisition of Odigo is relatively small, representing approximately 2.5% of Solwers' 2025 revenue forecast (82.9 MEUR).

However, the profitability of the company to be acquired is at a good level. Odigo's EBIT margin of around 12.5% significantly exceeds Solwers' current profitability level, which is pressured by the challenging market situation (2025e adj. EBIT-% 1.2%). The target company's profile aligns well with Solwers' strategy of seeking established, profitable, and entrepreneur-driven companies. The acquisition strengthens Solwers' offering in automation and industrial consulting and supports growth in Sweden.

Forecasts to be updated

The transaction has a positive impact on Solwers' financials. While the impact of this individual acquisition is moderate, combined with the previously announced Polish acquisition, inorganic growth is becoming more significant. Since the acquired business is clearly more profitable than the Group average, it also supports Solwers' margin profile. We will update our estimates in January to account for both announced acquisitions, although on the balance sheet side we will have to make estimates of the acquisition prices paid for them. In the big picture, we find the acceleration in the pace of acquisitions somewhat surprising, considering the company's high leverage (net debt to last 12 months' EBITDA ratio of ~5x), and we had expected the company to now focus on improving profitability through organic means.