Badger Meter Inc. will acquire D-Flow Technology AB of Luleå, Sweden for $23 million in cash, the Brown Deer-based company announced Wednesday.
D-Flow Technology designs and manufacturers integrated circuits and transducers and specializes in ultrasonic technology. The company has 13 employees and $2.5 million in sales last year. The deal is expected to close May 1.
“There is a growing acceptance of ultrasonic technology within the municipal water market. We believe the D-Flow Technology will strengthen our position in ultrasonic flow measurement by enabling us to further enhance our existing E-Series Ultrasonic product line, lower production costs and provide a platform for the continuing advancement of our ultrasonic capabilities,” said Richard Meeusen, Badger Meter chairman, president and chief executive officer.
Meeusen said D-Flow’s research and development work would stay in Sweden while production would come to Badger Meter’s Milwaukee-area and Mexican facilities. He said the deal is similar to Badger Meter’s 2013 acquisition of Aquacue Inc., which allowed the company to bolster its cellular technology.
“We’ve been looking for a way to beef up our ultrasonic technology,” Meeusen said, noting Badger Meter found it difficult to hire enough talent to accomplish the goal or to partner with another firm.
D-Flow currently makes some of the technology used by Badger Meter’s competitors. Meeusen said he initially sought to establish an exclusive licensing agreement with D-Flow, but the company wasn’t open to the idea. He said the acquisition will allow Badger Meter to control D-Flow’s future development while also bolstering Badger Meter’s ultrasonic capabilities.
