When David Frost joined Servelec Technologies as managing director just over a year ago, his first task was to scour the market for acquisitions boasting technologies delivering step-change in digital technology and leak detection. He reached out proactively to Primayer, a mature technology company based in Denmead, Hampshire.
The two companies had had a mutually respectful relationship over many years, but the timing was right as Primayer’s owner, Roger Ironmonger was just starting to consider his own next steps.
“The strategic rationale was as good as any you can find when you’re trying to build out the core business - we want to present an end-to-end offer to water companies to remotely monitor and control their assets. This starts with Primayer’s onsite datalogger and correlation system, which feeds directly into Servelec Technologies highly secure SCADA/telemetry data transfer systems.
“There was no duplication, it was 100 percent a complementary offering and the synergies go further still as our end customers in the UK are the same.”
Industrial IoT is reshaping automation, engineering and infrastructure globally and for the water industry, the installation of multiple low-cost leak detection devices makes capturing real-time operational data much easier. By harnessing and transmitting this wealth of newly available data, companies can carry out strategic operational analysis to drive efficiencies and reduce cost.
Both Servelec Technologies and Primayer already have their own international channel partners selling their portfolios. For Servelec Technologies this includes markets outside water, including energy, oil & gas and transport.
The reason Frost chose to scout UK technologies first was because of strong regulation in the market. He says Ofwat, the economic regulator for England and Wales, is challenging the water companies to continue to improve performance, which drives faster adoption of new technology, making it highly attractive.
He says that operating out of the UK gives the synergies from Servelec Technologies and Primayer an advantage. “Leakage is a global challenge and the UK is seen as a thought-leader. The way the industry is structured and regulated in the UK and the way technologies can be deployed within the district metered areas (DMAs) in the water network makes it progressive.
“As we seek to translate that success into other markets, it is easiest where there is tight correlation, such as Australia, Malaysia and other parts of South East Asia. Where the market is more fragmented, in France and the US for example, we will need to translate our model to make it relevant to those geographies.”
In the longer-term Western Europe, the Middle East and China are also in sight. Frost says further acquisitions are on the horizon as Servelec Technologies pursues global growth, but leveraging the full portfolio through its existing channel partners also provides opportunities.
“One example is Australia,” says Frost. “Primayer haven’t had a local representative there before, while Servelec Technologies has been in the market for over 15 years. This presents a significant opportunity to introduce their pinpoint leak detection noise loggers straight into the utilities we already work with.”
