ABB has signed an agreement to acquire the power electronics business of Gamesa Electric in Spain from Siemens Gamesa.
The transaction is subject to regulatory approvals and customary closing conditions, with an expected completion in the second half of 2025.
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While the financial terms remain undisclosed, the acquisition is a key part of the profitable growth strategy for ABB’s motion business area.
The strategic move aims to strengthen ABB’s position in the high-powered renewable power conversion technology market.
It is expected to enhance ABB’s power conversion product range and service offering to original equipment manufacturers (OEMs) and end-users in the renewables sector.
The acquired portfolio includes electrical products for power conversion such as doubly-fed induction generator wind converters, industrial battery energy storage systems and utility-scale solar power inverters.
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By GlobalDataABB will integrate more than 100 highly specialised engineers and two Spanish converter factories in Madrid and Valencia.
The workforce of 400 also includes key resources in India, China, the US and Australia.
Gamesa Electric’s power electronics business reported revenues of €170m ($178.4m) for the fiscal year ending on 30 September 2024.
According to the International Energy Agency, global renewable capacity additions are projected to grow annually, reaching 940GW by 2030, up from 666GW in 2024. Solar PV and wind are expected to contribute to 95% of this growth.
ABB’s acquisition will expand its serviceable power conversion installed base by 40GW, tapping into new service, modernisation and repower opportunities through its global network.
The Gamesa Electric team’s expertise is also anticipated to enhance the scope of ABB’s digital offerings. ABB plans to establish a supply and services agreement with Siemens Gamesa, ensuring a continued partnership and growth in the renewable energy sector.
ABB System Drives division president Chris Poynter stated: “This targeted acquisition is in line with our commitments to grow our portfolio for high-power renewable applications and support productivity in a low-carbon world. It will expand our engineering depth for power conversion and grid connection and will add significant opportunity to service a large installed base.
“With the acquisition of this business, we will be much better positioned to capitalise on the expansion of the power conversion market for renewables while building on our relationship with Siemens Gamesa as a key customer.”
