Entitec AG (Germany) - Oct 2007

unquote
01 October 2007

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Funds advised by AUCTUS Management have acquired a majority stake in German IT service provider Entitec AG for an undisclosed amount. The management team reinvested and retains a minority shareholding in the company. Entitec was sold by its three founders and 30 current and former employees. Dresdner Kleinwort was initially mandated to conduct an international auction but AUCTUS gained exclusivity early in the process. AUCTUS is looking to support the organic growth of the company in existing and new segments of the market. By providing IT services to VBG, the biggest players in the public accident insurance market, Entitec is in line to benefit from the current ongoing consolidation. Additionally, the company develops new products for new segments including the private pension sector. AUCTUS is considering add-on acquisitions of European niche market software leaders with €5-50m revenues.

Debt

HSH Nordbank supported the transaction with a senior-only debt package.

Company

Hamburg-based Entitec is an IT service provider exclusively for statutory bodies and pension funds. Founded in 1982, the company employs 60 staff. Services offered range from consultancy and development of software to implementation, maintenance as well as infrastructure services. The main element of Entitec’s services is a self-designed ERP (Enterprise Resource Planning) system that is fully adapted to the specific needs and business processes of statutory bodies like the Verwaltungs-Berufsgenossenschaft, VBG.

People

Dr Ingo Krocke and Sebastian Canzler led the transaction for AUCTUS Management GmbH. Nils Schraut worked on the debt package at HSH Nordbank.

Advisers

Vendor - Dresdner Kleinwort, (Corporate Finance)

Sourced from: Deutsche unquote" 93 (Nov 2007)