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Aker M&A Activity 2021

Jan 27, 2021

3526_rns_2021-01-27_ec3a3acb-9574-46ba-b52f-9d24dba33c5d.html

M&A Activity

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AKER ASA: Aker Horizons strengthens renewables portfolio with entry into hydropower

AKER ASA: Aker Horizons strengthens renewables portfolio with entry into hydropower

Aker ASA ("Aker") announced today that its wholly owned subsidiary Aker Horizons

AS ("Aker Horizons") has entered into an agreement to acquire Rainpower Holding

AS ("Rainpower"). Aker Horizons will use Rainpower as a platform to build a next

generation technology company to optimize hydropower developments and

operations.

"Aker Horizons is continuing its planet-positive investing, making strides

towards developing a growth platform of integrated renewable technologies with

positions in onshore and offshore wind and solar. With increasing demand for

power market flexibility and storage solutions, we are pleased to also be adding

hydropower capabilities to our portfolio through the acquisition of Rainpower as

a platform for building a next generation hydropower technology company," says

Kristian Røkke, Chief Executive Officer at Aker Horizons.

Aker Horizons will acquire 100 percent of the shares in Rainpower and will

contribute approximately NOK 100 million in capital to transition and develop

the company into a next generation hydropower technology and solutions provider.

Aker Horizons will combine the engineering and industrial software capabilities

of the Aker group with Rainpower's hydropower portfolio and experienced project

organization to reposition the company for growth. The new company will be

included in Aker Horizons' sunrise portfolio of companies that are in an early

phase or require further development to realize their full potential. It will

seek to identify and develop concepts for upgrading the hydropower installed

base to reflect the needs of future power markets, including an increasing need

for flexibility to rapidly respond to swings in intermittent renewable power

generation and for cost-effective and sustainable power storage solutions.

Rainpower is an experienced project organization based on Norwegian hydropower

technology founded by Kvaerner in 1853. Today, Rainpower offers proprietary

technologies for integrated products and services to the hydropower industry

worldwide. Its product and service portfolio ranges from turbines, governor

systems, control systems and other equipment, maintenance services and

rehabilitation, as well as technology for hydropower system design and upgrades.

Rainpower is headquartered at Lillestrøm, Norway, and has offices across Norway,

as well as in Sweden and China.

The transaction is conditional on recapitalization of the company with its

current lenders, in addition to customary closing conditions including required

anti-trust filings.

"Hydropower is part of Aker's DNA, tracing back to the very start of the

industry when Kvaerner developed the first ever Norwegian turbine and formed the

basis for an entire Norwegian supplier industry. Fast forward to 2021, and the

story is coming full circle. In true Aker spirit, we are identifying

opportunities to build on our track record and capabilities to drive value

creation. Hydropower is an industry we already know well, but today we also

stand ready to leverage on decades of engineering insight and a strong software

expertise to develop world class technologies and solutions for the hydropower

industry" says Øyvind Eriksen, President and Chief Executive Officer at Aker ASA

and Chairman of Aker Horizons.

Rainpower will collaborate with leading industrial software company, Cognite, to

develop a portfolio of applications for optimization of operations, response

time, distribution, and trading. The company will also establish a concept

development and engineering insight team to become a key partner for the

hydropower industry, in addition to building an integrated portfolio of

operations technologies for next generation dynamic power plants.

For further information, please contact:

Atle Kigen, Head of Corporate Communications, Aker ASA

Tel: +47 90784878

Email: [email protected]

Christina Chappell Glenn, Head of Investor Relations, Aker ASA

Tel: +47 90532774

Email: [email protected]

Ivar Simensen, Communications, Aker Horizons and Aker Offshore Wind

Tel: +47 46402317

Email: [email protected]