Target Information

IDP, with over 25 years of experience, is a leading provider of engineering services based on Building Information Modeling (BIM) and digitalization across various sectors. Following a successful and robust growth strategy, IDP has achieved revenue of €30 million in the last twelve months, tripling its size in the process.

Founded in 1998, IDP has established itself as a specialist in providing engineering services utilizing BIM technology and methodology. The company's business model, driven by innovation, facilitates applying BIM throughout the entire lifecycle of an asset, from design and construction to maintenance. IDP has also enhanced its capabilities in digitalization with the development of Digital Twins to optimize asset performance, showcasing a presence throughout Spain with 10 offices and a highly skilled workforce of over 550 employees.

Industry Overview in Spain

The engineering services industry in Spain is experiencing a significant transformation, largely driven by the increasing adoption of digital tools and methodologies like BIM. The integration of technology in engineering has paved the way for enhanced quality, cost reduction, and improved execution timelines, making it essential for companies aiming to remain competitive in the market.

Moreover, the Spanish market is progressively leaning towards sustainability, with an upsurge in demand for engineering services related to environmental projects, logistics, and energy efficiency. This evolution offers substantial opportunities for companies such as IDP that focus on high-value and high-growth verticals.

As the emphasis on digital transformation intensifies across various sectors, companies that can leverage BIM and digital strategies are positioned favorably for expansion. The presence of established firms like Bureau Veritas signifies a viable partnership landscape that can bolster innovation and operational efficiency in the sector.

Overall, the engineering services sector in Spain is thriving, with expanding demand for innovative solutions and a strong push towards digitalization. This environment is conducive to the growth of firms like IDP, which have effectively established their expertise in this domain.

Rationale Behind the Deal

The divestment of IDP by Nazca Capital represents a strategic move following a successful project that tripled the company’s size since 2020. The transaction enables Nazca Capital to realize a return on investment of over three times, marking it as the third divestment from the Nazca Small Cap I fund, which was raised in early 2019.

The acquisition of IDP by Bureau Veritas aligns with its strategic vision to leverage IDP's engineering expertise as a global technical hub for expanding BIM and digital capabilities internationally. This synergy is expected to foster growth and innovation within the combined entity.

Information About the Investor

Nazca Capital is a leading venture capital firm focused on investing in non-listed Spanish SMEs. With a portfolio that includes significant growth potential sectors, Nazca Capital is committed to providing support to its investees in executing ambitious growth plans. Their approach combines both organic and inorganic development, evidenced by IDP's remarkable growth trajectory under their partnership.

The firm is currently advancing in raising its second fund, Nazca Small Cap II, with a target size of €200 million, which will continue to support small and mid-cap companies in achieving their growth objectives.

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This deal presents a favorable investment opportunity for Bureau Veritas, marking its entry into the high-growth engineering services domain, particularly in BIM technology, where IDP has built considerable expertise. The strategic acquisition can accelerate Bureau Veritas's growth and enhance its service offerings on a global scale.

For Nazca Capital, the successful divestment reflects their effective strategy in enhancing IDP's value and market position, and obtaining a significant return on their investment is a testament to their operational expertise and foresight in the market.

Looking forward, the deal creates a strong platform for IDP under Bureau Veritas, enabling it to capitalize on its established capabilities while expanding internationally. The symbiosis of their resources and expertise can ultimately benefit clients and foster significant industry advancements.

Overall, this investment illustrates a successful partnership and strategic growth, with the potential for future collaborations and innovations within the engineering services sector.

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