A Tansformational Deal Representing A Key Milestone In SECO’S Growth Strategy
AREZZO, ITALY, October 11, 2021 /EINPresswire.com/ — SECO S.p.A. (“SECO”), reference player in the field of technological innovation, Internet of Things and Artificial Intelligence solutions, listed on the STAR segment of the Italian Stock Exchange (Ticker: IOT:MI), is pleased to announce that it has entered into a binding agreement to acquire the entire share capital of Garz & Fricke Holding GmbH (“Garz & Fricke Group” or the “Company”), a Hamburg headquartered producer and developer of hardware and software solutions for the industrial Internet of Things (IoT), through AF HMI Holding, ultimately controlled by Afinum Siebte Beteiligungsgesellschaft mbH & Co. KG, advised by Afinum Management GmbH (“Afinum”), and other minority shareholders as jointly owners of 100% of the share capital of the Company (the “Sellers”). The total consideration amounts to €180m and comprises a cash consideration of €165m and €15m newly issued SECO shares, as described in the following paragraphs.
Founded in 1992, Garz & Fricke Group is a leading supplier of standard and custom edge Human-Machine Interface (HMI) solutions, their building blocks and a tailored ecosystem of IoT, software and payment solutions. The Company was acquired by Afinum in 2017, and has expanded its operations under its ownership completing two strategic acquisitions in the field of edge systems and software applications. Today Garz & Fricke Group operates under three complementary brands: “Garz & Fricke” (HMI solutions), “Keith & Koep” (Systems on Module) and “e-GITS” (Software & Platform).
For the full year ending December 2021, Garz & Fricke Group is expected to generate approximately €45m in revenue and an adjusted EBITDA in excess of €10m. Furthermore, by the end of the year, the Company expects to manage more than 65,000 active IoT and 39,000 payment installations, representing a clear opportunity to roll-out SECO CLEA software into Garz & Fricke Group installed IoT devices. Besides components, the Company focuses is on systems that are seamlessly integrated and customized. These are implemented on the basis of individually adapted standard or custom solutions. Regular customers include OEMs and system integrators from target verticals including medical and laboratory technology (MedTech/LabTech), professional kitchen equipment, vending and diversified industrials. All products are made in Germany in the two modern Company's production facilities.
Garz & Fricke Group has a strong technological footprint with c.28% headcount in R&D, out of c.190 total employees as of September 2021. The Company is led by CEO Stefan Heczko.
Massimo Mauri, CEO of SECO, commented: “The acquisition of Garz & Fricke Group is a landmark moment for SECO’s growth project and a unique opportunity to continue to create value for our shareholders and customers, in line with the strategy we outlined to the market earlier this year during the IPO process. We see the acquisition of Garz & Fricke Group as a key milestone to strengthen our European and global leadership position, reinforcing our strategic access to a key market like Germany and further accelerating the adoption of CLEA on an enlarged customer basis, as well as adding key competences and technologies to our product portfolio in order to continue to deliver the highest standards of quality and service to our customers. Finally, we look forward to welcoming the management team and all the people of Garz & Fricke Group into our organisation and to make them an integral part of our project.”
Stefan Heczko, CEO of Garz & Fricke Group, commented: “This combination is an ideal strategic fit and will allow our customers to benefit from the development of a wider product offering and improved operations, integrating existing Garz & Fricke Group solutions into SECO technological and operational platform. Both SECO and Garz & Fricke Group are best-in-class players in the field of HMI/Edge solutions as well as leading developers of Industrial IoT systems. We are delighted to be part of this new journey and to contribute to further accelerate SECO’s growth trajectory.”
– REINFORCES STRATEGIC PRESENCE IN THE DACH REGION, ONE OF THE MOST ATTRACTIVE MARKETS IN IOT/AI AND EDGE COMPUTING
– SIGNIFICANT VALUE CREATION THANKS TO THE UNIQUE STRATEGIC FIT AND STRONG SYNERGY POTENTIAL
– MORE THAN 200,000 DEVICES PRODUCED ANNUALLY (OF WHICH C.65,000 ALREADY RUNNING IOT CONNECTIVITY SOLUTIONS) TO FURTHER ACCELERATE THE DEPLOYMENT OF CLEA PLATFORM IN GERMAN-SPEAKING COUNTRIES
– HIGHLY COMPLEMENTARY ACROSS ALL OPERATING METRICS, WITH SIMILAR FINANCIAL PROFILE (EBITDA MARGIN 20%+)
– BRINGS HIGH QUALITY TEAM LED BY GARZ & FRICKE GROUP’S CEO STEFAN HECZKO, STRENGTHENING SECO’S TALENT POOL
– CLEAR AND DEFINED INTEGRATION PLAN TO BE COMPLETED IN THE NEXT 18 MONTHS
SECO (IOT.MI), listed on the Italian Stock Exchange (STAR segment), develops and manufactures cutting-edge technological solutions, from miniaturized computers to fully customized integrated systems combining hardware and software. SECO also offers CLEA, a proprietary end-to-end IoT-AI analytics software suite, made available on a SaaS basis, that allows clients to gather insightful data from their on-field devices in real time. SECO employs over 500 people worldwide and operates through 3 production plants, 6 R&D hubs and sales offices in 9 countries. With a turnover of more than €75 million as of December 31, 2020, SECO serves more than 200 blue-chip customers which are leaders in their respective fields, including Medical, Industrial Automation, Aerospace & Defense, Fitness, Vending and many other sectors. SECO R&D capabilities are further enhanced by long-lasting strategic partnerships with tech giants and collaborations with universities, research centers, and innovative start-ups. Corporate social responsibility is part of the strategy of SECO, that undertakes several actions to reduce its environmental footprint and increase its impact on its people and local communities.
For more information: http://www.seco.com/
Source: EIN Presswire