Vaisala expands its subscription-based business by acquiring Speedwell Climate Ltd, a leader in climate and environmental risk transfer. The acquisition enables Vaisala to enter the insurance segment with tools for organizations to protect themselves from financial losses caused by weather-related uncertainties.
Speedwell Climate provides data and software to structure, price, and settle index-based climate risk transfer contracts. The company serves various industries, such as insurance, investment funds, and renewable energy, with leading customers like the CME Group.
Through climate risk transfer contracts, organizations can move their weather-related risks to a parametric insurance provider. This way, they can receive compensation in case of certain environmental or weather-related triggers, such as storms, floods or heatwaves. Climate risk transfer is also vital for the energy transition as it protects renewable energy projects from financial risks due to the variable nature of wind and solar.
The acquisition strengthens Vaisala's position as a global leader in measurement instruments and intelligence for climate action. It aligns with the company's strategy to build recurring revenue in data, creating opportunities to broaden offerings and scale growth within existing and new customer segments.
"The combined skills and dataset of Speedwell Climate and Vaisala Xweather bring new opportunities to help customers mitigate and adapt to climate change. With weather becoming increasingly unpredictable, organizations need new tools to manage their risk position. We are very excited to welcome the skilled Speedwell Climate people to our team – together, we can turn weather anxiety into weather confidence,” says Samuli Hänninen, Head of Vaisala Xweather.
Founded in 1999, Speedwell Climate is headquartered in Harpenden, United Kingdom, with a subsidiary in the United States. The company has been growing profitably, reaching net sales of close to GBP 4 million in 2023. Following the acquisition, 24 professionals will transfer to Vaisala.
The acquisition of Speedwell Climate Ltd and its group companies is subject to regulatory approval and is expected to be closed in Q4 2024.
Vaisala | vaisala.com