Target Information

Łódź-based private equity fund Avallon has acquired a majority stake in Globema, a leading company in the promising field of geospatial solutions, specifically focusing on Geographic Information Systems (GIS) and Location-Based Services (LBS). In 2021, Globema reported sales of approximately 62 million PLN and an EBITDA of about 10 million PLN. The company employs over 170 staff across its operations in Poland and four foreign subsidiaries, catering to a diverse clientele, including renowned global corporations such as Bolt, Vodafone, and General Electric.

Founded in 1997 by Marek and Maria Gondzio, Globema specializes in providing tailored geospatial solutions and IT products for enterprises that rely on network infrastructure. Its client base spans various sectors, including telecommunications, energy, and heating, where effective management of geolocated data is vital. Some key offerings include solutions for managing distributed infrastructure, integrating geospatial data, AI/ML analytics, and comprehensive data digitization. Additionally, Globema provides tools for smart electric networks (Smart Grids) and assists in precise forecasting of renewable energy production.

Industry Overview

The geospatial solutions sector in Poland is rapidly expanding due to the increasing reliance on location-based data across various industries. As an integral part of technological services, geolocation information is projected to comprise approximately 80% of all data currently being collected. The growing emphasis on data accuracy and efficiency in sectors like e-commerce, transport, logistics, and retail signifies a strong demand for specialized geospatial services.

Moreover, the importance of digital transformation has further accelerated the adoption of GIS technologies. Organizations are increasingly integrating these solutions into their operations to enhance decision-making processes, improve customer experience, and optimize resource management. Poland's positioning as a technological hub adds to its potential as a key market for geospatial services in Europe.

With a solid infrastructure and a technologically savvy workforce, Poland has become an attractive destination for businesses looking to invest in geospatial solutions. The favorable conditions regarding government policy towards tech innovations and research contribute to the sector's growth, enabling companies like Globema to thrive internationally.

The synergy between GIS and sectors such as energy, transportation, and telecommunications encourages collaborative innovations, which further drive market growth. As companies strive to adopt advanced technologies, the demand for geospatial solutions is predicted to rise significantly in the coming years.

Rationale Behind the Deal

This investment represents an opportunity for Avallon to engage with a well-established company poised for growth in both domestic and international markets. Recognizing the significant potential for expansion, Avallon aims to elevate Globema's offerings in LBS by leveraging tools such as Google Maps and enhancing network management systems using GE Smallworld solutions. The firm also plans to commercialize its proprietary products developed through extensive R&D efforts in recent years, providing a robust foundation for future growth.

Investor Information

Avallon is a prominent private equity fund headquartered in Łódź, focused on strategic investments in high-potential companies. With a diverse portfolio that includes eight other businesses—ranging from juice production to marketing services—Avallon demonstrates a commitment to nurturing companies with viable growth trajectories. With 137 million EUR raised for new investments, Avallon actively seeks additional opportunities to expand its portfolio.

View of Dealert

View of Dealert suggests that this acquisition is a strategic move by Avallon, aligning with global trends in geospatial solutions and data utilization. Investing in Globema, a company with a solid market presence and experienced team, represents a promising path to tapping into the growing demand for GIS and LBS services.

The opportunity for international expansion and the extensive capabilities within its product offerings further bolster the investment's potential for growth. Moreover, with GovTech and FinTech sectors increasingly integrating geospatial data, the necessity for innovative solutions positions Globema advantageously for the foreseeable future.

In conclusion, this transaction signifies not only a potential financial success for Avallon but also a significant step toward reinforcing Globema's competitive position in the global market. By focusing on product enhancements and international outreach, this investment is likely to yield substantial returns within a few years.

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