Idinvest Partners: Investments in ComNet and MEHRWERK by Netgo
Paris/Frankfurt am Main, January 2020 — Idinvest Partners, the European investment company specializing in the SME segment, has financed the acquisition of the two German IT specialists ComNet and MEHRWERK by the Borken-based Netgo Group of Companies (Netgo) in the form of a unitranche. Back in October 2019, Idinvest Partners had provided unitranche financing for its investment in Netgo through independent Dutch private equity investment firm Waterland. Thus, shortly after Waterland’s entry, Netgo is already successfully implementing the jointly defined buy-and-build strategy, benefiting from the acquisition line provided by Idinvest Partners, which will also support further external growth. The closing of the transactions to acquire the two companies has now taken place.
ComNet, based in Würselen (North Rhine-Westphalia), has been supporting smaller companies in particular in setting up IT infrastructure since 1990. With 21 employees, the company serves around 200 customers nationwide and offers a wide range of services. — ComNet takes over the entire IT infrastructure and the operation of its customers’ business-critical applications, including all administrator activities, by means of its own, self-designed high-performance data center (private cloud). A special feature are industry solution packages for tax consultants, auditors, lawyers, companies, care facilities and medical supply stores. The service and product portfolio and the customer structure of Netgo and ComNet complement each other. The aim of the partnership between Netgo and ComNet is to offer customers of both companies a broader range of IT solutions and services.
Karlsruhe-based MEHRWERK was founded in 2008 and specializes in optimizing business processes with the help of agile enterprise software. With around 30 employees, the company advises around 250 customers of all sizes from the industrial, retail and service sectors on optimizing business processes. These include, for example, IT-based supply chain management, SAP cloud and business analytics solutions. MEHRWERK is an SAP Cloud Gold Partner and leading solution provider in the DACH region for the Qlik data analysis platform. By integrating MEHRWERK, the Netgo Group intends to further accelerate its growth by pooling resources.
The Netgo group of companies now has around 370 employees at 18 locations. The company advises and supports customers in the areas of server and storage systems, security solutions, networks, IP telephony, virtualization, data center and cloud services and develops customized strategies and solutions. With Waterland’s support, Netgo will continue its ambitious strategy of organic and external growth, focusing not only on products in IT service management but also on Industry 4.0 and digitization.
Dr. Carsten Rahlfs, Managing Partner at Waterland, comments on the group’s growth: “The two acquisitions are an excellent start to Netgo’s buy-and-build strategy. We want to consolidate the fragmented market for IT system houses, which is growing at around 10 percent per year, and implement further partnerships. As a growth investor, it is essential for us to have financing partners like Idinvest Partners on board when implementing such strategies, who can structure and quickly implement individual solutions.”
Five German private debt transactions by Idinvest Partners in 2019
In 2019, Idinvest Partners was involved in five transactions in Germany:
In February, the company financed the acquisition of hotel operating company GS Star by Auctus Capital Partners.
Subsequently, Idinvest Partners provided unitranche financing for two add-ons to the GS Star Group: the acquisition of the Rilano Group with seven four- and three-star hotels in Germany and Austria in March and Turicum Hotel Management GmbH with two hotels in Zurich and Bern in October.
Also in October, the unitranche financing for Waterland’s investment in Netgo .
In addition, Idinvest Partners participated in the acquisition financing for the purchase of LAP Laser Applications by IK Investment Partners in June.
Florian Zimmermann, Managing Director and Head of Idinvest Partners’ Frankfurt office, says: “The transactions of this and last year show very well what Idinvest Partners stands for. Growth is in our DNA as an investor that finances and supports innovation, investment and expansion with a wide variety of instruments and funds in the areas of private debt, venture and growth capital.”
About Idinvest Partners
Idinvest Partners is a leading European investment firm focused on the mid market. Currently, Idinvest Partners manages assets of around €8 billion with more than 90 employees and has offices in Paris, Frankfurt, Madrid, Shanghai and Seoul.
The company has three business units: Venture & Growth Capital, Private Debt and Private Funds Group. The company was founded in 1997 as part of the Allianz Group and has been independent since 2010. In January 2018, Idinvest Partners became part of the Eurazeo Group. The merger created a leading global investment company with €17.7 billion in assets under management (including nearly €11.6 billion from investment partners) invested in a diversified portfolio consisting of nearly 400 corporate holdings.