EQT acquires cyber security business Utimaco in SBO

Katharina Semke
24 October 2016

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Swedish private equity firm EQT has acquired German cyber security business Utimaco from Pinova Capital, BIP Investment Partners and the management.

EQT acquired the company via an auction process run by Raymond James. As part of the deal, the sellers reinvested part of their proceeds for a minority stake.

The firm plans to grow Utimaco through international expansion and add-on acquisitions. It is currently arranging the debt package and was unable to comment on size and type yet.

Most of Swedish private equity firm EQT's transactions take place in the Nordic region. However, the GP has an office in Munich and makes occasional investments in the country. Its only other private equity deal in the country this year took place in June, when it bought the Mannheim-based real estate services business of engineering company Bilfinger for €1.4bn EV. Also in June, the firm's venture capital arm EQT Ventures led the $10m series-A for German office management business Service Partner One.

Previous funding
Pinova and BIP acquired Utimaco in a management buyout in October 2013 from UK security software provider Sophos. The first time Utimaco crossed paths with private equity buyers was in 2008, when Investcorp took a stake in the then-listed business, before it was sold to Sophos.

Company
Founded in 1983 and based in Aachen, Utimaco is a provider of hardware-based cyber security appliances. The company has a turnover of €40m, 170 staff and subsidiaries in the US, Italy, the UK and Singapore.

People
EQT – Fredrik Åtting (partner).
Pinova Capital – Joern Pelzer (partner).
BIP Investment Partners – Katrin Wehr-Seiter (managing director).
Utimaco – Malte Pollmann (CEO).

Advisers
Equity – King & Wood Mallesons (legal); PwC – (financial due diligence, commercial due diligence).
Vendors – Raymond James (M&A).