GE Vernova buys full ownership of Prolec joint venture for 5.28 billion dollars

Strategic Move Accelerates Electrification Segment Growth

On October 21, 2025, GE Vernova Inc. (NYSE: GEV) announced its agreement to acquire the remaining 50% stake of Prolec GE, an unconsolidated joint venture previously held with Xignux. This acquisition aims to reinforce GE Vernova’s position as a leading global supplier of grid technologies, while driving the growth of its Electrification segment—the fastest-growing segment of the company[1][3].

Key Details of the Acquisition

• Purchase Price: $5.275 billion, to be funded equally with cash on hand and debt[1].
• Ownership Transition: GE Vernova will assume full ownership of Prolec GE, consolidating the joint venture after 30 years of partnership with Xignux[1][2].
• Closing Timeline: Expected by mid-2026, subject to regulatory approvals[2].

Prolec GE: A Leading Grid Equipment Supplier

Prolec GE is recognized for producing transformers across a wide range of ratings and voltages, serving utilities, industrial customers, and data centers. The company employs around 10,000 people globally, with seven manufacturing sites—including five in the United States. Its expected revenue for 2025 is approximately $3 billion, with an adjusted EBITDA margin of around 25% and low double-digit growth projected in the coming years[1][2].

Market Impact and Future Prospects

• North American Expansion: The acquisition will expand GE Vernova’s capabilities to serve North American customers, where grid technology demand is rapidly increasing—driven in part by the growth of data centers and supportive government policies[1][2].
• Financial Benefits: The deal is immediately accretive before synergies and is expected to add $0.6B incremental EBITDA to GE Vernova on a full-year basis in 2026[2].
• Synergies: GE Vernova plans to fully integrate Prolec GE for clear cost and revenue synergies, aligning with its disciplined capital allocation strategy[2].

Executive Perspectives

Scott Strazik, CEO of GE Vernova, stated: “This acquisition aligns with our strategic and financial objectives and is also good for our customers by strengthening our presence in North America where demand for grid equipment is growing rapidly. The deal is immediately accretive before synergies, with a partner we know well, and will drive additional profitable growth for GE Vernova. I want to thank the teams at both companies and look forward to welcoming the Prolec GE team to GE Vernova.”[1]

Xignux affirmed its decision: “We have taken this decision with full conviction after years of valued partnership with GE and GE Vernova. This transaction provides the opportunity for this business and team to continue their growth under the capabilities of a global leader.”[1]

Conclusion

For additional details, visit GE Vernova’s official press release and TradingView’s coverage.