WEG announced today the signing of the contract for the acquisition of REIVAX S.A. ("REIVAX") and its subsidiaries, a Brazilian company operating in the power generation control systems sector.

Founded in 1987, REIVAX is a well-established company in the power generation control systems market, with a presence in the hydroelectric, photovoltaic, wind, thermoelectric, substation and industrial segments. In addition to Brazil, REIVAX has a global reach, being a reference in Latin America and with a strong presence in North America, as well as consistent sales in countries such as India, Europe and Southeast Asia. The company's headquarters are located in Florianópolis, state of Santa Catarina, with subsidiaries in Switzerland and Canada, and has a team of approximately 220 employees. In 2023, REIVAX recorded net operating revenues of R$ 131 million, with an EBITDA margin of 22.6%, more than half of which came from sales made outside Brazil.

According to Carlos José Bastos Grillo, WEG’s Digital & Systems Managing Director, the acquisition will allow the Company to expand its solutions portfolio, integrate new technologies and improve customers' operational efficiency. "The search for efficiency and reliability in the energy industry and the focus on sustainability are global trends that align with our vision and growth objectives. This acquisition represents an expansion of our offer in power generation and transmission, improving the reliability and resilience of the grid, which needs to evolve with renewable energies, including adjacent solutions such as battery energy storage systems (BESS) and synchronous compensators."

REIVAX operates on three levels within the power generation chain. First, by providing turbine and generator manufacturers with its digital voltage and speed controller systems. Second, by serving power generation companies in the integration of these equipment (generators, turbines, controllers), which can be heterogeneous due to various characteristics such as brands, sizes and construction specifications, ensuring optimized integration and a complete control system. At this level, supplies can be for new generation plants or for modernization, repowering and automation services of existing plants. Third, REIVAX supports its clients thanks to its experience, helping them in regulatory matters before bodies such as the ONS in Brazil. These services include studies, specialized modeling and parameterization services, providing generation and transmission operators and regulatory bodies with the best design and analysis of grid stability and resilience.

Completion of the transaction is subject to the fulfillment of certain conditions precedent, including the necessary regulatory approvals related to the transaction.