Danfoss has taken over the full ownership of Finnish startup company Leanheat Oy specializing in the monitoring, control and optimization of heating in centrally heated buildings by using artificial intelligence (AI) and sensors.
In 2016, Danfoss partnered with and invested in Leanheat Oy, and Danfoss has continuously increased its share of Leanheat. Now an agreement has been signed to acquire the remaining shares.
The combination of Danfoss’ deep system and application know-how and Leanheat’s strong capabilities in developing analytics-based software solutions is an important lever to accelerate Danfoss’ position within important segments like Multi-Family Houses and District Heating Systems, and to further advance the digitalization of its core components.
We are proud and honored to be able to assume ownership of Leanheat. Over the last three years, we have gotten to know each other better both as business partners and as colleagues. And every interaction has reinforced our common vision and unmatched value proposition in our markets. We have great respect for the technology they have built and taken to market, for their incredible team, and for their entrepreneurial mindset – it makes up the heart of Leanheat and this is what we want to preserve going forward”, said Lars Tveen, President, Danfoss Heating.
The acquisition of Leanheat brings new innovative and complementary services and business models to Danfoss Heating’s core business, within which Leanheat will continue operations as an separate business unit headed by its present CEO, Jukka Aho.
Leanheat has consistently outperformed the original business plan which was developed as part of Danfoss’ initial investment in 2016. The completion of the acquisition is a testament to the incredible accomplishments made by Leanheat within a very short timeframe. The Leanheat installed base has grown rapidly and the potential to make more buildings smart is huge. By the end of 2018, Leanheat was installed in 100,000 apartments globally and the aim is to achieve the milestone of one million apartments by 2022.
I am pleased with the development of both our business and partnership with Danfoss over the past years. Our decision to partner with Danfoss in 2016 allowed us to move ahead at unprecedented speed to build a strong domain leadership in energy optimization using AI and sensors. We can all be proud of our achievements so far, and I am looking very much forward to embarking on the next phase of our growth journey, which will enable us to accelerate our international expansion even further,” says Jukka Aho.
From top left: Torben Dynnweber, M&A Director, Danfoss; Pekka Paaskunta, Development Director Finland, Leanheat; Juho Ruuhijärvi, Product Manager, Pandia; Janne Lemmetti, Lead Developer, Leanheat; Lassi Viitala, COO, Leanheat; Juha Varis, COO, Pandia; Kim Fausing, President & CEO, Danfoss; Michael Glass, Vice President, Segments and Products, Danfoss and Glenn Kristiansen, Senior Director, Heat Meters, Danfoss. Sitting by the table: Lars Tveen, President Danfoss Heating Segment and Jukka Aho, CEO, Leanheat.
For more information, please contact:
Jukka Aho, CEO
+358 40 738 3909