Target Information

CANCOM SE has announced the acquisition of significant assets from DextraData GmbH, specifically focusing on the company’s IT Consulting and Services (ITCS) division, which includes a team of 57 skilled professionals. This acquisition, finalized on November 27, 2023, aims to enhance CANCOM's capabilities in complex IT infrastructure and managed services, critical areas in today’s technology landscape.

DextraData GmbH, headquartered in Essen, Germany, has built a strong reputation as a provider of complex IT infrastructure projects across the country, particularly in North Rhine-Westphalia. In the fiscal year 2022, the ITCS division generated approximately €35 million in revenue and an EBITDA of around €4 million. The company has a diverse clientele that primarily consists of well-established medium-sized industrial firms, with an increasing focus on larger corporations and public clients.

Industry Overview

The IT consulting and services industry in Germany has seen significant growth, driven by increasing demand for robust IT infrastructure due to heightened security and artificial intelligence needs. As organizations transition towards hybrid environments, the challenges associated with integrating these solutions have amplified, creating opportunities for experienced service providers.

This trend is particularly evident in data centers, where organizations are striving to modernize their infrastructure to handle complex scenarios effectively. As businesses increasingly rely on cloud solutions and desire seamless integration of their on-premises and cloud systems, the demand for IT consulting services continues to rise.

In this environment, companies like CANCOM, with their robust service offerings and expertise in IT strategy, are positioned to succeed. Their comprehensive approach to IT solutions—ranging from consulting to implementation—enables them to address the specific needs of clients navigating digital transformation.

Overall, Germany's IT landscape is characterized by a push towards innovation, efficiency, and digital readiness, making it a fertile ground for companies specializing in cutting-edge IT solutions.

Rationale Behind the Deal

The acquisition of DextraData's ITCS division is a strategic move for CANCOM, reinforcing its position in the competitive IT landscape. The enriched talent pool and advanced technical expertise gained from this deal will enhance CANCOM’s offerings in managed services and infrastructure solutions.

Furthermore, the collaboration taps into DextraData's established relationships with major technology partners, notably Dell, fortifying CANCOM's capability to deliver comprehensive and innovative solutions tailored to client needs.

Investor Information

CANCOM SE, a renowned Hybrid IT service provider, has been guiding businesses towards successful digital transformations. With a workforce of approximately 5,600 and a robust partner network, CANCOM serves clients across Germany, Austria, Switzerland, and Belgium.

Throughout 2022, CANCOM recorded about €1.3 billion in revenues, showcasing its strong market presence and operational capacity. The company's leadership team, headed by CEO Rüdiger Rath, is committed to driving innovation and ensuring clients can efficiently navigate their IT complexities.

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This acquisition presents a promising investment opportunity for CANCOM, as it creates synergies that can significantly enhance service offerings. By integrating DextraData's skilled workforce and experience, CANCOM is positioned to improve its market competitiveness as clients increasingly seek comprehensive solutions for complex infrastructure needs.

The ongoing trends in the IT sector highlight the necessity for businesses to adapt swiftly to evolving technological demands. In this context, CANCOM's strategic acquisition aligns well with market expectations and positions them for sustained growth.

Moreover, the transition to hybrid IT solutions necessitates a trustworthy partner by businesses, and CANCOM’s enhanced capabilities will make it an attractive choice for organizations seeking reliable IT consulting and managed services.

In conclusion, this acquisition is a strategic leap forward for CANCOM, enabling them to capitalize on emerging trends and better serve a diverse clientele while fostering innovation and efficiency within their operational framework.

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