Italian IoT and edge computing firm Eurotech has acquired InoNet Computer, a German company operating in the sectors of industrial PCs and embedded systems, for €10m.

Founded in 1998, InoNet is an established player in the Dach market, where it supplies custom and configured systems in the medical, industrial and automotive sectors. For the year ending March 2023, InoNet expects revenues of €17.5m and EBITDA of €0.7m.

Eurotech expects to be able to bring InoNet’s EBITDA margin into double digits within the next two and a half years. It has identified cost synergies on the supply chain and growth synergies related to cross-selling actions, both to InoNet’s existing customers and to new customers in the Dach area.

The addition of InoNet gives Eurotech relevance and critical mass in Germany, and creates an access to the Dach market, which is the world’s second largest market for industrial IoT after the USA.

InoNet shares with Eurotech the same focus on critical applications, high-quality products and high added value. In addition, the two companies have a strong complementarity products, markets and channels.

InoNet represents a solid platform for Eurotech to accelerate in the emerging global edge AI market, growing over 30% year-on-year, starting from industrial PC types of products. In addition, integration with Eurotech’s edge software and cyber-security certifications should enable differentiation and accelerate the journey towards being a leading provider of integrated devices for edge AIoT applications.

“I’m happy to welcome InoNet to the Eurotech family,” said Paul Chawla, CEO of Eurotech. “InoNet allows us to have a direct presence in Germany, which has been a white space so far in our footprint. We share similar DNAs when it comes to helping customers solve challenging problems. The complementarity of our offerings will help us scale in Dach, the second fastest growing IoT market in the world, with strong differentiation in cyber security linked to integrated hardware and software.”

Michael Schmohl, founder of InoNet, added: “Twenty-five years after founding InoNet Computer, I am excited to hand over the company to an industrial IoT player that fits so perfectly with our corporate culture and our customers.”

And Ioannis Armenis and Ralph Ostertag, managing directors and co-owners of InoNet, said: “We are all thrilled by the opportunity to create a leading provider of edge AI devices. With InoNet’s presence in Dach and Eurotech’s presence in the Americas, UK and Asia, the two companies truly complement each other. We look forward to building on our companies’ consistent commitment to innovation and customer service.”