Emeram's Matrix24 acquires FireScope

Matrix42 said in a statement that the acquisition will assist with its expansion to the US market and will also allow FireScope to gain customers in Europe. Following the deal, Matrix24 is expected to report revenues of €50m in 2020 and will have around 400 employees.

Emeram supported the bolt-on with additional equity.

FireScope founder and CEO Steven Cotton will join Matrix42's management as the company's general manager and vice-president of the Americas.

Emeram acquired Matrix24 from listed Poland-based software company Asseco for €46.3m in an MBO in November 2015. The GP deployed equity via Emeram Fund I, which held a final close in January 2015 on €400m.

Matrix24 acquired Germany-based endpoint security software company EgoSecure in June 2018.

Emeram had looked to sell Matrix24 in 2018, according to Unquote sister publication Mergermarket, and had mandated Raymond James to run the process. However, the sale was halted in May 2019 following valuation issues due to EBITDA adjustments, with both parties telling Mergermarket that the GP would continue its investment for another two to three years. Emeram had hoped to see a valuation of €150-200m and had marketed Matrix24 based on adjusted EBITDA of €20m.

Company
Founded in 2006, FireScope provides asset intelligence and service management software that allows businesses to analyse the communication and performance in data streams between devices, apps and data centres. The company aims to facilitate cloud transformations for companies.

Headquartered in Huntington Beach, California, the company also has offices in Texas, as well as Australia and London. The company has 45 employees, according to LinkedIn.

People
Emeram Capital Partners – Kai Köppen, Dr Christian Näther, Markus Gyssler (partners); Konstanze Klasen (investment manager).
Matrix24 – Oliver Bendig (CEO).
FireScope – Steven Cotton (founder, CEO).

Advisers
Acquirer – Alavarez & Marsal (corporate finance); Thompson Hine (legal), GLNS (legal).

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