goetzpartners advised Kontron AG

goetzpartners advised Kontron AG with a Commercial Vendor Due Diligence on S&T IT Services

goetzpartners advised Kontron AG with a Commercial Vendor Due Diligence on the sale of major parts of its IT services business (“S&T” or “the Company”), to VINCI Energies S.A. for c. EUR 400m. Through this divestment, Kontron is following its growth strategy to focus on the Internet of Things (IoT) business. The transaction is subject to customary closing conditions.

The Commercial Vendor Due Diligence included a comprehensive review of S&T’s business model, with a particular focus on the Company’s product and service portfolio, the characteristics of its customer relationships and revenue streams, its unique selling proposition, as well as its spin-off readiness from the corporate mother. Key customer cohorts were analyzed over time to substantiate the long-term, re(-o)curring nature and future stability of S&T’s revenue base. In addition, the size and development of the addressed regional IT services markets in the DACH and CEE regions were analyzed, taking into account key market drivers such as an increasing degree of IT outsourcing, shift to the cloud, scarcity of skilled personnel, and increasing public funding IT budgets, and considering the different regional market characteristics such as maturity, customer types, and customer structures. Also, S&T’s strategic positioning and competitive performance was evaluated on a regional market level. Finally, the business plan feasibility was assessed and several beyond-the-plan opportunities for further growth were identified.

This project complements goetzpartners’ outstanding track record in providing strategic and commercial advisory services in the IT services and software space.

ABOUT KONTRON AG
Kontron AG is a global provider of IoT and Embedded Computer Technology solutions. Its IT services business, S&T, is a leading full-service IT solutions provider with geographical focus on the DACH and CEE region. The IT powerhouse is a trusted partner in supporting the digital transformation of both private customers as well as public institutions.

TRANSACTION TEAM

Dr. Gerrit Schütte
Managing Director
Email

Gerrit Bückins
Principal

Andreas Haselbach
Senior Consultant

Gabriel Berenstein
Consultant

Stefan Brückl
Consultant

Jannis Sandow
Associate Consultant

Louisa Frank
Associate Consultant