Reason for acquisition: The company is an established player in its field of activity. It has a strategy for growing its operations in Europe via acquisitions, therefore the management is open to speaking to interested sellers
Overview of the Buyer for a financial software company in Europe
The buyer is a well-established player in providing digital solutions and technology services. The company helps global organizations in their digital transformation journey by providing services for enterprise transformation, corporate digital strategy, digital marketing & sales, digital finance operations, digital HR, talent & change management. The group has done previous acquisitions in Europe and US and has allocated acquisition funds from its own cash reserve to invest in future suited targets. One of the key pursuit is in the area of change and operations transformation for its technology group. The buyer is keen to pursue opportunities where a Financial institution is looking at selling its captive operations in Europe. Also, the management is interested in opportunities where the financial institution is looking at selling a specific operating IT platform to monetise. The target company activates in IT industry and is specialized in software, IT infrastructure and services. As specific activities can be mentioned PaaS, SaaS, Technology development and support. It needs to have knowledge and experience in the Financial Services Sector. The location is all across Europe, with a preference for Germany, Netherlands, UK, Spain, Austria, Denmark, Norway, Switzerland. The desired company records revenues between 5-50M Euro, has an EBITDA above 30% and employs between 50-500 people. As possible synergies to bring to target can be mentioned the depth and breadth of its technology offerings and strong capabilities in Financial Services.
Profile (strategy) of the Buyer for a financial software company in Europe
The buyer records more than 500M Euro revenue and employs around 10.000 employees. The company has a comprehensive range of digital and technology services and solutions that allows customers to achieve new levels of business performance. There is focussed on Micro Verticals, on clients that come from sectors such as General Insurance, Banking (Retail and Investment), Asset & Wealth Management, Payments. Enterprises want to be resilient and successful on a longer term, in order to achieve this, they need to focus on Digital Agility, Cross-over IT and on the Stability of Core Systems. Client companies are helped to execute digital initiatives and to realize the return on digital investments. In order to be able to continue to provide high-quality solutions, the management wants to explore transformation ideas including alternate investment options/carve outs/acquisitions/monetisation.
The company’s activity is focused on 3 key service line: Imagine (experience strategy & experience design), Make (build and implementation), Optimize (deploy, run and maintain). The Digital Strategy and Corporate Development team supports clients to re-engineer business strategies and transform the business operations in order to become a better version of themselves capable to face the present and future challenges. Defining and implementing the digital vision, strategy, priorities and investments make businesses more productive and competitive. The company provides services that allow organizations to transform their IT capability through new technologies and optimize digital operations performance in order to deliver outstanding customer experience.