MidEuropa-backed intive completes three bolt-ons

MidEuropa is pleased to announce that its portfolio company intive has completed three acquisitions to expand its global footprint and accelerate its scale-up in a fast growing and consolidating market.

The digital design and engineering services specialist operates an outsourced digital product development model which combines local onshore presence with nearshoring delivery capability in Central and Eastern Europe (CEE) and Latin America, in order to tap into a deep and high quality pool of IT talent. intive’s 2,800+ digital natives serve blue-chip clients including Ericsson, Audi, BMW, Vorwerk, BASF, Viacom, Discovery and Tandem.

intive’s recent acquisitions include:

  • US-based Spark Digital, a digital consulting, design, and development services provider, which significantly expands intive’s US presence as well as Media sector domain expertise. Spark Digital serves multinational enterprise clients with US onshore presence combined with nearshore delivery in Argentina and across greater Latin America (December 2021)

 

  • US-based SimTLiX, a digital transformation partner for some of the biggest Fortune 500 companies, which further boosts intive’s regional presence in the Americas and strengthens its domain expertise and value offering for customers in FinTech, Telecom, Healthcare and Retail sectors (November 2021)

 

  • Ireland-based Ammeon, a digital transformation and solutions partner, which extends intive’s regional presence in the UK & Ireland and its capability for customers in the Telecommunications sector, as well as the cloud domain and DevOps practices (May 2021)

MidEuropa acquired intive in February 2019, following early identification and approach to management and shareholders. Under MidEuropa’s stewardship, intive has expanded its delivery and design studios across existing and new geographies and more than doubled its workforce. intive is headquartered in Munich, with broad revenue and delivery coverage across Europe and the Americas.

Gurdeep Grewal, Chief Executive Officer of intive, said, “These acquisitions are helping us to achieve our global ambitions more quickly. MidEuropa’s support in helping to identify and approach businesses is invaluable, helping make a time-consuming and complex undertaking more straightforward. Their experience gives us confidence and strength in processes.”

Kerim Turkmen, Partner at MidEuropa, said, “The phenomenal growth intive is achieving is down to the impressive ambition of the team as well as the exciting global opportunity for their offering. We are delighted to support strategic priorities and devote capital and M&A resources to enable the team to accelerate growth and achieve international scale.”

Enterprise Investors to back the expansion of Ekoenergetyka-Polska

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors (EI), is to acquire a significant minority stake in Ekoenergetyka-Polska (Ekoenergetyka), a high-technology company focused on power charging solutions for electromobility.

  • The fund will invest over EUR 45 million in Ekoenergetyka-Polska and other projects related to e-mobility;
  • The transaction is conditional upon obtaining antimonopoly approval.

Ekoenergetyka is a Polish technology company offering unique solutions for the global market. Its main activity is the design and production of charging infrastructure for electric vehicles used in public and commercial transport, as well as private cars. The electromobility sector has grown rapidly in recent years, propelled by technological developments and more environmentally conscious customer choices. A stable, widely available and, above all, technologically advanced charging infrastructure is needed to keep up this growth momentum and meet the market’s present and future requirements. Ekoenergetyka is one of just a few players in the world offering such solutions.

Established by Mr. Bartosz Kubik and Mr. Maciej Wojeński in 2009, Ekoenergetyka grew out of an academic research project. Today, the company is a leading provider of advanced high-power charging solutions and has the potential to go global. Its products and services have been implemented in the largest European cities, including in Barcelona, Berlin, Hamburg, Munich, Paris and Warsaw. Thanks to its continually expanding R&D capabilities, superior research facilities and first-class production equipment, Ekoenergetyka is the technological leader in the field and successfully competes with international peers. Product development – from R&D through design and construction to sales and marketing – is carried out in-house. Ekoenergetyka also offers a broad range of maintenance and after-sales services that include 24/7 monitoring of charging stations and remote customer support in Polish, English and German. The company is led by a young management team with the right mix of vision, expertise and motivation to execute their ambitious expansion plan.

“We strongly believe in the electromobility sector’s dynamic growth and are very impressed by Ekoenergetyka’s innovation and technological sophistication as well as by how the company is commercializing its solutions,” said EI partner Sebastian Król, who is in charge of the deal. “The company’s unique experience and flexibility as well as the high quality of its products are appreciated by the most demanding customers in Poland and abroad. Ekoenergetyka’s solutions have been selected and implemented by the largest public transport operators in Poland and Europe, as well as by the major charging and fuel distribution networks. Thus the company is helping shape the development of this extremely fast-growing young market. This is an advantage we plan to use to reinforce Ekoenergetyka’s leading position,” he added.

“We decided to team up with Enterprise Investors to benefit from their experience in developing young entrepreneurial companies that are in a rapid growth phase. Ekoenergetyka is planning swift expansion, primarily in foreign markets. For this next step in our company’s development we sought a strong financial partner that would support us with both capital and experience. Now we can focus on becoming the number one player in the market,” said Bartosz Kubik, Ekoenergetyka’s co-founder.

“With Enterprise Investors’ support we intend to continue growing dynamically and developing our technological, production and organizational potential even faster, to build the best solutions for the zero-emissions transport of the future. Customer satisfaction at every stage is our priority, so I am pleased we have a partner with whom we will achieve our most ambitious goals in terms of production, service and maintaining our systems at peak efficiency,” added Maciej Wojeński, co-founder of Ekoenergetyka.

Enterprise Investors was supported on the legal side by DLA Piper Giziński, Kycia sp. j.; Ekoenergetyka-Polska and its founders were represented by the law firm Rubicon Kancelaria Radców Prawnych i Adwokatów Barbara Łągiewka sp. k.

Enterprise Investors finances the expansion of FinGO

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors (EI), has become a 40.6% shareholder in FinGO, the fastest-growing financial services intermediary in Slovakia.

  • The fund has invested EUR 19.1 million;
  • EI has teamed up with Mr. Lukáš Novák (InTeFi Capital), the company’s founder, to boost FinGO’s dynamic growth in Slovakia and the Czech Republic.

FinGO is an innovative financial services intermediary with a multi-channel distribution platform. The company sells mortgages and life insurance primarily, but also investments, pension savings and non-life insurance. It was founded in Slovakia in 2017 with the aim of building a technology-based ecosystem. The idea was to connect all the major financial institutions (e.g. banks, insurance providers and savings companies) with end customers, thus optimizing their choices. Thanks to FinGO’s unique business model users can compare complex products online, gain a better overview of what is available on the market and make more informed decisions. After running an initial analysis through the online platform they are served by one of FinGOo’s more than 1,000 exclusive agents, who can usually offer them an even better deal. FinGO gives its network of agents the best combination of commissions and product selection, comprehensive CRM system and back-office functions as well as extensive product and marketing support.

Thanks to its unique online lead-sharing platform and rapidly growing network of agents, FinGO is now the fastest-growing financial intermediary in Slovakia. This year the company expanded into Czechia, where it aims to replicate its successful business model. FinGO’s sound market position is reflected in its strong financial results – in 2021 the company plans to top EUR 23 million in revenues.

“We are convinced that the market of third-party financial product intermediation in Slovakia and Czechia will grow steadily in the coming years. FinGO was the first player to address the growing needs of customers looking to compare complex and high-value financial products online. Our plan is to build on this innovation and tap prevailing trends. We want to grow the business both organically and through acquisitions,” said EI managing partner Dariusz Prończuk, who is responsible for this investment.

“FinGO provides a very complex service. The company helps customers find optimal solutions at reasonable prices that would not be available to them without such intermediation. Through its marketplace FinGO also provides agents with new customer leads and other useful tools – not available elsewhere – that make their work more efficient,” added Martin Chocholáček, a vice president at Enterprise Investors who is responsible for the firm’s activity in Slovakia.

“I highly value the Enterprise Investors team’s trust and their appreciation of FinGO’s unique concept. Thanks to their investment, we can not only start building a major player in the Czech market but also develop and expand the largest digital broker in Slovakia. With this strong partnership we will continue our journey of digitizing financial intermediation to build the broker of the future. EI’s extensive experience, not just in the financial sector, will certainly be a valuable asset for FinGO,” said Lukáš Novák, the company’s founder and chairman.

Enterprise Investors to invest in Focus Garden

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors (EI), today announced it will acquire a 60% stake in Focus Garden, owner of one of Poland’s most popular e-stores dedicated to garden furniture and accessories.

  • The company founder – Mr. Sławomir Czajkowski – will remain its shareholder and will become chairman of the supervisory board;
  • The value of the transaction has not been disclosed;
  • The transaction is conditional upon obtaining antimonopoly approval.

Focus Garden was established in 2007 and was initially engaged solely in the import and distribution of garden furniture. Over time, the company developed an e-store in line with the prevailing retail trends. Today, focusgarden.pl is one of Poland’s largest specialist retailers focused on outdoor living. Its offer includes a wide selection of garden and patio furniture as well as other outdoor accessories, most of which – thanks to the company’s well-organized purchasing and logistics department – are available immediately.

Focus Garden operates in a very promising specialty retail niche in which it already holds a leading position. This is reflected in its good financial results – in 2021, the company’s revenues will exceed EUR 13 million.

The funds we manage have invested over EUR 350 million in 17 companies operating in the retail sector, including e-commerce. We intend to use this extensive experience to support the further development of Focus Garden,” said Bartosz Kwiatkowski, a partner at Enterprise Investors who is responsible for this investment.

Commenting on the transaction, Sławomir Czajkowski, the founder of Focus Garden, said: “I am proud that the company I created has secured a strong investor who will help us reinforce its position in its current market and successfully enter new ones.

CMS European M&A Outlook 2022

We are pleased to provide you with this year’s edition of the “European M&A Outlook”, published in co-operation with Mergermarket.

71% of dealmakers agree that private equity (PE) firms are better placed than corporates to take advantage of buying opportunities presented by COVID-19, according to the ninth edition of the European M&A Outlook, published by CMS in association with Mergermarket.

The report offers a comprehensive assessment of dealmaking sentiment in Europe’s M&A market. It reflects the opinions of 330 corporates and PE firms based in Europe, the Americas and APAC about their expectations for the European M&A market in the year ahead.

While financial buyers may be better placed than strategic buyers, more than half of survey respondents expect the overall level of European M&A activity to increase over the next 12 months, with both corporates and PE firms eager to make up for lost time. This stands in stark contrast to last year’s poll, in which 78% of interviewees were preparing for a decrease in M&A.

Key findings from our survey include:

  • A brighter outlook: 53% of respondents expect European M&A activity to increase over the next 12 months (compared to only 2% last year)
  • Low valuations and distress: 24% see undervalued targets as the most important buy-side driver of M&A activity. 22% identify distressed-driven M&A as the most important catalyst for sell-side activity.
  • Private equity in pole position: 71% agree that financial buyers are better placed than strategic buyers to take advantage of buying opportunities in the post-lockdown revival.
  • ESG gaining importance: 72% expect ESG scrutiny to increase during the next three years.

Our features in this year’s report include an editorial on Earn-Outs in the time of COVID-19 pandemic, an editorial on the CEE Hotel Investment Scene, ESG considerations in M&A deals for the year ahead and Brexit and FDI considerations.

Please note that our annual CMS European M&A Study will be published in spring 2022 when we will report back on how this market has impacted M&A transaction terms and conditions.

For more details on CMS´s report click here.

THBE – Hungarian Impact Day Conference

Dear CVCA members,

one of the other conferences held in Hungary is the Hungarian Impact Day which is organized by THBE Association (more info THBE – Társadalmi Hasznosságú Befektetők Egyesülete) on the 14th of October 2021 in Radisson Blu Béke Hotel Budapest.

This conference will be held under the patronage of the President of the Republic of Hungary János Áder and its main topic is Relationship between ESG and Impact Investment. For more agenda, and list of speakers please visit THBE Hungarian Impact Day.

The conference is hybrid so you can participate in person, or virtually.

Among the speakers, you can meet:

  • Sir Ronald Cohen
  • Dr. Cornelius Walter: Lightrock
  • Cyril Gouiffes: European Investment Bank
  • Alexander Langguth: Übermorgen Ventures
  • Nick de La Forge: Planet Ventures
  • Dominik Varga: Erste Asset Management GmbH
  • László Gáti: OTP Fund Management
  • Zsuzsanna Répássy: Ittaszezon!
  • and others

As a partner, we are glad to share a 20% discount for our members. If you are interested, please register HERE, using the code THBE_FRIENDS.

In case of any questions, please contact directly bogsch.nora@thbe.hu.

Private Equity & Venture Capital Conference

Dear CVCA Members,

As a partner of 0100 Conferences, we would like to kindly invite you to the next Private Equity & Venture Capital Conference, scheduled for November 24, 2021, in the Primate’s Palace in Bratislava, Slovakia. You can look forward to meeting in person 200 PE & VC professionals. You will have a chance to hear the latest industry insights from speakers such as:

  • Andrej Kiska: Credo Ventures
  • Karol Szubstarski: OTB Ventures
  • Rustam Kurmakaev: Mid Europa Partners
  • Julia Sohajda: Vespucci Partners
  • Maximilian Schausberger: Elevator Ventures
  • Martin Chocholacek: Enterprise Investors
  • Pekka Maki: 3TS Capital Partners
  • Marek Malik: Jet Investment
  • Jaroslav Luptak: Neulogy Ventures
  • Michal Rybovic: Sandberg Capital
  • Michal Aron: ARX Equity Partners
  • Bartolomiej Gola: SpeedUp Group
  • Slavo Tuleja: ZAKA VC
  • Radoslav Tausinger: CVI
  • Rudolf Vrabel: 365.fintech
  • Karol Gogolak: G4 FRIENDS – Global Blockchain Funds
  • and many others

Please find the complete agenda here: 0100 Conference Bratislava – The Leading Investment Conference – 0100 Conferences.

As a partner, we are glad to share a 15% discount for our members, using the promo code BA21CVCA.

Please register here.

In case of any questions, please contact directly pavol@0100conferences.com

 

Enterprise Investors to invest in Snap Outdoor

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors (EI), will acquire an 80% stake in Snap Outdoor, a distributor of mountaineering and climbing equipment. The company also owns 8a.pl, Poland’s most popular e-store dedicated to active tourism and mountain sports.

  • The company founders – Mr. and Mrs. Piotr and Elżbieta Czmoch – will remain minority shareholders and will team up with EI to facilitate the dynamic future growth of the business;
  • The value of the transaction was undisclosed;
  • The transaction is conditional upon obtaining antimonopoly approval.

Snap Outdoor is a distributor of mountain sports equipment and runs 8a.pl, the undisputed leader among specialty online retailers. 8a.pl trades apparel, footwear and accessories for outdoor activities and mountain sports such as climbing and ski touring. The company has two brick and mortar stores (in Warsaw and Gliwice, southern Poland), with a third location (in Katowice, southern Poland) due to open shortly. Snap Outdor was founded in 2001 in Gliwice, where its headquarters and logistics center are still located.

The company operates in a very promising market niche that is fueled by healthy lifestyle trends, the increasing popularity of outdoor sports (including mountain sports) and the rising disposable income of Poles. The outdoor sector is expected to continue its dynamic growth in the coming years.

8a.pl stands out from its competitors with its well curated assortment built around tourism and mountain sports. The company strategy is to offer only masstige and premium brands, which are otherwise not widely available. It also has the largest product availability among outdoor equipment specialists in Poland. Strong financial results confirm Snap Outdoor’s leading market position – revenues topped EUR 16 million in 2020, while this year they are expected to exceed EUR 23 million.

“We are convinced that Snap Outdoor’s business model can be successfully replicated in other CEE markets, which in most cases lack a clear market leader in outdoor e-tailing. Thanks to its broad experience in the specialized online retail sector and excellent logistics, the company can become a consolidation platform for other niche e-commerce segments,” said Enterprise Investors Partner Michał Kedzia, who is responsible for the firm’s investments in the retail sector, including Intersport ISI and Snap Outdoor.

“The greatest advantage of our online business is the broad base of returning customers, most of whom are passionate about mountain sports. With every product on the market being just one click away, this proves our strategy and focus on high quality have been key contributors to our success. We plan to make our offer available to mountain lovers from other countries of the region. Our goal is to become the favorite brand for outdoor enthusiasts in Central and Eastern Europe,” emphasized Piotr Czmoch, cofounder of Snap Outdoor.

Enterprise Investors to finance the expansion of Modular System

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors, will acquire a 36.3% stake in Modular System, the largest Polish manufacturer of multi-function container and modular systems.

  • The value of the transaction was undisclosed;
  • The transaction is conditional upon obtaining antimonopoly approval.

Modular System is the undisputed market leader in the production of multi-function turnkey containers and modular systems based on the steel frame technology – the winning solution for temporary non-residential structures (e.g. office buildings, portable staff facilities, military containers). In contrast to traditional construction methods, this technology enables swift, flexible deployment at a fixed cost. It also allows for a high degree of prefabrication.

Modular System’s products are reliable, have a wide range of applications and represent good value for money. As a result, the company is developing dynamically and enlarging its geographical footprint in response to the needs of new market niches. Since 2020 Modular System has reaped the benefits of having a well-equipped and highly efficient new production plant in central Poland. The company’s strong market position is reflected by its excellent financial results. Revenues reached EUR 30 million last year, while in 2021 the company plans to almost double that figure.

“Paweł Brudnicki and Mariusz Brudnicki, the company’s founders, are directly responsible for Modular System’s spectacular success. We are convinced that their entrepreneurial approach, extensive sector knowledge and broad experience will allow us to jointly make the best use of the favorable trends in the construction industry and the advantageous macroeconomic conditions,” said EI partner Michał Kędzia, who is responsible for this transaction. “We expect container and modular technologies to increase in popularity in the years to come, translating into a strong demand for this type of construction. We believe Modular System will not only strengthen its leading position in Poland but will become a regional champion,” he added.

“We are proud that our company has attracted a strong PE investor. Thanks to EI’s backing we now plan to grow at an even faster pace, both by entering new markets and by expanding our offering in those sectors and geographies in which we are already present,” said Paweł Brudnicki, CEO of Modular System.

“Enterprise Investors’ strong track record in the construction industry, including the prefabrication segment, was an important factor in our decision-making process. Together, we plan to replicate this success in the utility containers and modular systems sector,” added Mariusz Brudnicki, a vice president at Modular System, who is responsible for sales and business development.

PE invests in record 566 CEE companies in 2020

  • Second-best year for VC investment and private equity exits across the region

Brussels, Belgium – 29 June 2021 Private equity firms invested in a record 566 companies in Central and Eastern Europe in 2020, as the industry supported dynamic SMEs and start-ups that will fuel the recovery from the impact of COVID-19 and underpin long-term economic and social development across the region.

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today released its 2020 Central and Eastern Europe Private Equity Statistics. The report shows that the number of companies receiving private equity investment increased by 15% on the previous year’s record and beat the five-year average by 46%.

Venture capital was the driving force for company investments in 2020 as firms backed 474 start-ups and scale-ups with total investment of €358 million – just 4% below the all-time high achieved in 2019. Overall private equity investment slipped to €1.7 billion in 2020, mainly due to the absence of large buyout transactions involving equity commitments exceeding €300 million during the period.

Poland was the leading destination with a quarter of the region’s total investment value (€431 million)  and home to almost a fifth of the companies receiving funding. By investment value, it was followed by Estonia with 21% of the CEE total, the Czech Republic (17%), Hungary (14%) and Croatia (9%).  Hungary was the leading destination for investment by deal number with 236 companies receiving €226 million in funding, 220 of those were venture capital. Poland reported a total of 105 new investments, of which 82 were venture deals. Across the region and all investments, Information and Communication Technology was the leading sector, accounting for almost half of companies backed, while Consumer Goods and Services ranked second.

Bill Watson, Chair of Invest Europe’s Central and Eastern Europe Taskforce, commented: “Private equity is supporting more companies than ever across Central and Eastern Europe. These are fast-growing businesses that can help drive the region’s recovery from the effects of the pandemic, as well as its long-term economic and social development. CEE is on a path that converges with the rest of Europe and private equity can play an essential role in enabling companies in the region to achieve their full potential.”

Eric de Montgolfier, CEO of Invest Europe, added: “Private equity backed companies in CEE are developing into local, regional and global champions. They are highlighting not only the talent, skills and entrepreneurship inherent in the region, but also the vast opportunity still to come as experienced managers work with businesses to take them to the next level.”

 

Public offerings fuelled a strong year from private equity exits in 2020, drawing attention to the strength and potential of companies being created in CEE. Exits increased by 47% to €1.4 billion, measured at historical investment cost, with public listings hitting a record of €690 million. The statistics show that the CEE region more than doubled its proportion of European exit value to 5.8% in 2020.

 

Private equity fundraising for investment in CEE dropped to €1 billion as fundraising cycles meant that the region’s large fund managers were not in the market raising new funds. But, the venture capital sector raised €667 million in 2020, the second-highest total on record, positioning the sector for a sustained high level of investment activity in the coming years.

The 2020 Central and Eastern Europe Private Equity Statistics are available to download from Invest Europe’s website, investeurope.eu. Please click here to access the full report.