Vaisala, a measurement instruments and intelligence data provider, has acquired Speedwell Climate, a company specialising in data and software for climate risk transfer contracts.
Financial terms of transaction, which awaits regulatory approval, were not disclosed.
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This move enables Vaisala to provide tools for organisations to mitigate financial losses due to weather uncertainties, marking its entry into the insurance sector.
Speedwell Climate, established in 1999 and based in the UK, offers services to industries such as insurance, investment funds and renewable energy.
The company caters to clients such as the CME Group and has reported profitable growth, with net sales reaching nearly £4m ($5.22m) in 2023.
As part of the deal, 24 Speedwell Climate professionals will join Vaisala.
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By GlobalDataClimate risk transfer contracts are essential for organisations looking to offload weather-related risks to parametric insurance providers.
These contracts offer financial protection against specific environmental or weather events such as storms, floods or heatwaves, which is particularly crucial for safeguarding renewable energy projects from the financial unpredictability of wind and solar power.
The acquisition is expected to strengthen Vaisala’s portfolio as a provider of measurement instruments and data for climate action.
It is in line with the company’s strategy to increase recurring revenue streams through data services and to expand its customer base in both existing and new market segments.
The deal is due to be completed in the fourth quarter of 2024.
Vaisala Xweather head Samuli Hänninen said: “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, organisations 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.”
This development comes at a time when the UK insurance industry is experiencing a significant increase in property claims, with a record payout of £1.4bn in the second quarter, as reported by the Association of British Insurers.
The rise in claims is attributed to severe weather events including storms, heavy rainfall and frozen pipes, which have caused extensive damage to homes and businesses.
