TA Associates buys majority stake in Igel

Previous investor Melchers is to maintain a significant minority stake in the company, according to a statement. Founder and former CEO Heiko Gloge will retain a minority stake in the business.

IT industry expert Bill Veghte will join the company's board, alongside TA managing director Jonathan Meeks and principal Stefan Dandl.

Following the investment, the company intends to expand its operational and development activities, as well as to grow internationally.

TA is currently deploying equity via TA XIII. The fund held a final close in May 2019 on $8.5bn. The fund makes investments of $75-400m and focuses on businesses with enterprise values of $200m-1bn.

Unquote sister publication Mergermarket reported in March 2020 that Melchers had engaged DoubleDigit to sell the business following 35% growth in revenues and an increase of more than 200% in software units sold in 2019. At the time, the company was marketed based on 2019 EBITDA of €16m, with projected 2020 EBITDA of €20m. The publication subsequently reported that indicative bids were due at the end of May 2020.

Previous funding
Nord Holding backed the MBO of Igel in 2008, leaving Melchers with a minority stake of 30%.

Company
Founded in 2001 and headquartered in Bremen, Igel provides software and IT services for cloud-based workplaces. It supports systems including Citrix, AWS, Microsoft and VM Ware. The company reported revenues of €80.7m in 2017. Igel said in a statement that its recurring revenues grew by 150% in 2020. It employs more than 250 staff, according to LinkedIn.

People
TA Associates – Jonathan Meeks (managing director); Stefan Dandl (principal).
Igel – Heiko Gloge (managing partner); Jed Ayres (CEO).
Melchers – Nicolas Helms (managing partner).

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