Eos Capital Partners acquires Mod IT Services

Former owner Anja Osterloh is the vendor in the transaction. Managing director Torsten Otto will continue in the role that he has held since 2019, according to a statement.

Eos said in the same statement that the company will be the centre of a newly established IT platform, supporting the company in its growth, internationalisation and digitalisation.

A source close to the situation told Unquote that Mod IT will be seeking add-ons to develop its services and product offering, which will be likely to include software and business process outsourcing (BPO) companies. Add-ons will generally have revenues of up to €50m and will initially be DACH-based, with pan-European expansion expected at a later stage, the source said.

Eos held a final close for its debut fund in September 2020 on its €175m hard-cap, as reported by Unquote. The fund targets DACH-based Mittelstand companies with EBITDA of €1.5-6m, revenues of €5-50m and an EV of €10-60m. The vehicle makes equity investments of €5-30m.

Prior to Mod IT, the GP had already acquired Brunner, a medtech components company, and an undisclosed company in the kindergarten space. The firm made three investments on a deal-by-deal basis prior to raising the fund and Mod IT will be the vehicle’s third platform investment.

Company
Founded in 1991, Mod IT Services provides IT security and digital workplace services for Mittelstand businesses. Its services include lifecycle management, managed network services and IT service automation. The company manages around 10,000 digital workplaces. Headquartered in Einbeck, the firm employs around 150 staff and has additional offices in Hannover and Kassel.

People
Eos Capital Partners – Philipp Wegener (partner).
Mod IT Services – Torsten Otto (managing director).

Advisers
Equity – Tracc Legal (legal); Shearman & Sterling, Winfried Carli, Marius Garnatz (legal); Poellath (legal); Arbeitsrecht Schweier (legal); Deloitte (financial due diligence, tax); Telescope Partners (commercial due diligence); GCA Altium (debt advisory).
Vendor – Axcit, Tobias Warkus, Christian Stippler (M&A).

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• Buyouts
• DACH
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