SGT Capital to acquire Summit-backed Elatec for EUR 400m

Min Ho
31 May 2023

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Summit Partners has reached a deal to exit its investment in Germany-based access management systems provider Elatec to SGT Capital in a EUR 400m deal, according to a press release.

The radio frequency identification (RFID) reading systems manufacturer was put up for sale advised by Goldman Sachs based on around EUR 25m EBITDA for 2022 and forward-looking EBITDA of around EUR 30m-EUR 35m, as reported by Unquote sister publication Mergermarket.

Summit acquired a majority stake in Elatec in 2018 from German sponsor DPE. The vendor remained invested in the business holding a minority stake, according to a statement made at the time.

At the time of its acquisition of Elatec, Summit Partners was deploying equity via vehicles including its third European growth equity fund, which held a final close in July 2017 on its EUR 700m hard-cap.

The GP is currently deploying equity via vehicles including Europe Growth Equity Fund IV, which held a final close at EUR 1.4bn in February, according to Unquote Data.

Under its new owner, Elatec CEO Robert Helgerth and his team will remain in place, according to the press release.

Elatec will primarily focus on "continued technical innovation" plus international expansion, with growth focused on themes including Electric Vehicle Mobility, Smart Business, Smart Office and Smart City, according to the press release.

Company
Headquartered in Puchheim in Bavaria, Elatec develops and supplies a range of secure physical and digital access solutions. The Company provides contactless (RFID, Bluetooth Basic Rate and Enhanced Data Rate) reader hardware for user identification and a cloud based IoT platform with SaaS device management solutions. Elatec has more than 150 employees around the globe and supports 60+ RFID card type technologies plus BLE and NFC, while its products are certified in 110 countries and enable end-to-end encryption.

People
SGT Capital - Joseph Pacini and Carsten Geyer (co-managing partners).
Elatec - Robert Helgerth (CEO) Gerhard Burits (CFO).
Summit Partners - Matthias Allgaier and Steffan Peyer (managing directors and board directors at Elatec).

Advisors
SGT Capital – EY (financial); Willkie Farr & Gallagher (legal); Grant Thornton (tax); Roland Berger (commercial); Consileon (technology).
Summit Partners – Goldman Sachs (financial).