Bryan Garnier advises Eve Systems on its acquisition by ABB
Munich/ Zurich — Munich-based Eve Systems GmbH has gained the Zurich-based energy and automation technology group ABB Ltd. as its new owner. Founded in 1999, Eve Systems is a renowned provider of smart home products of high quality and ease of use, they include a wide range of devices for home automation, energy management, security and device monitoring. With its 40 employees, Eve is a pioneer of the new connectivity standard Matter, which allows smart home products to be fully interoperable regardless of the manufacturer or the user’s operating system via Thread wireless technology.
According to ABB management, the transaction will make ABB a leading provider of smart home products based on Matter and Thread, the new interoperability standard and wireless connectivity technology. Combined with Eve’s complementary range of products tailored to the consumer retrofit market, ABB aims to accelerate the delivery of safe, smart and energy-efficient homes and buildings. The financial terms of the transaction were not disclosed.
Significant market growth and robust valuations
According to the experts at Bryan, Garnier & Co., providers of smart home applications, especially companies with corresponding energy solutions, have recently benefited greatly from the energy crisis. The investment bank also expects significant growth in this area in the future: the number of smart homes worldwide, currently around 300 million, is expected to rise to around 500 million by 2025. Accordingly, this market is attractive for investors — for example, the German heating app specialist tado reported at the beginning of April 2023 that the financing round of EUR 43 million, which was only concluded at the beginning of January 2023, was subsequently increased by a further EUR 12 million.
The experts at Bryan, Garnier & Co. are also observing a sustained high level of M&A transactions in the smart home segment: after 44 acquisitions across Europe in 2021, there were a total of 41 deals in 2022, with a further 15 transactions already added by the end of May 2023. According to investment bankers, this trend will continue:
“There is a high level of innovation in the market for smart home applications, many vendors are experiencing strong growth rates, and both strategic players and financial investors are increasingly investing in this space to capitalize on the trend toward connected and smart homes,” said Falk Müller-Veerse, partner at Bryan, Garnier & Co. (Photo © Bryan Garnier) “In doing so, we observe robust company valuations.”
Strategists in particular are willing to pay considerable premiums to expand their product portfolios or enter new markets, as can be seen in the example of Somfy SA. At the beginning of 2023, the Despature family, based in France, had completed the acquisition of the remaining 26.1% of this listed company, paying almost 1.4 billion euros. “This corresponded to a multiple of 3.1x revenue and 14.4x EBITDA,” Müller-Veerse explains.
According to the experts at Bryan, Garnier & Co., Eve is currently the global technology leader with a total of 16 Thread-certified devices and four Matter-certified products already. Matter is a technology that ensures interoperability of brands and devices while maximizing usability, Thread is a wireless standard developed for the Internet of Things (IoT), which is used by Matter to improve connectivity between devices. Both standards are considered groundbreaking for the industry.
Markus Fest, founder of Eve Systems comments, “Selling a company you founded and helped build is a big step for any entrepreneur. This was my fourth exit, and I was absolutely thrilled with the support and industry expertise we received from the Bryan Garnier team throughout the process.”
“This milestone is significant for me as CEO and marks an exciting new chapter for Eve. ABB is the perfect fit for Eve’s mission to develop energy-efficient connected home products that protect user privacy. We are very grateful to Bryan Garnier for putting this deal together for us. Her network and in-depth industry knowledge were instrumental in bringing this deal to fruition. The entire Eve team looks forward to continuing to grow with one of the world’s most innovative brands as a leader in the smart home market,” said Jerome Gackel, CEO of Eve Systems.
Bryan Garnier’s multinational deal team consisted of Falk Müller-Veerse (Partner), Olivier Beaudouin (Partner), Martin Eichler (Director) and Jakub Veiner (Associate).
About Bryan, Garnier & Co
Bryan, Garnier & Co, founded in 1996 in Paris and London, is an investment bank focused on European growth companies with over 200 employees in six offices in Europe (London, Paris, Munich, Stockholm, Oslo, Amsterdam) and the US (New York). As an independent, full-service investment bank, Bryan, Garnier & Co provides comprehensive financing advice and support along the complete lifecycle of its clients — from initial rounds of financing to a potential sale or IPO with subsequent follow-on financing. On average, the bank accompanies a good 70 transactions per year.
The range of services includes equity analysis, equity sales and trading, private and public capital raising, and M&A advisory for growth companies and their investors. The focus is on the growth sectors of technology, healthcare and sustainability. Bryan, Garnier & Co is a registered broker and licensed with the AMF and FCA in Europe and FINRA in the US.