Information on the Target

CARYA, previously known as Carya Group, is a prominent full-service IT partner specializing in solutions for automotive dealerships in the Benelux region. Recently, CARYA has acquired Softmotive, a value-added reseller of incadea solutions based in Switzerland. This acquisition represents a significant step in CARYA's strategy to expand its market presence through both organic and inorganic growth.

Softmotive brings extensive expertise as an incadea partner and possesses strong relationships with major dealership groups across Switzerland. By integrating Softmotive into its portfolio, CARYA aims to enhance its service offerings by leveraging Softmotive's know-how and connections especially in the luxury automotive sector.

Industry Overview in Switzerland

The Swiss automotive industry is characterized by a robust market for premium brands, supported by consumer demand for high-quality vehicles and services. With a strong presence of international automotive brands, Switzerland serves as a significant market due to its high purchasing power and customer loyalty. The integration of digital solutions into dealership operations has become increasingly critical as the industry evolves.

Digitalization has transformed the way dealerships operate, making it essential for IT partners to provide comprehensive solutions that include software, hardware, and integrated marketing services. As Swiss dealerships navigate the complexities of modern operations, the demand for sophisticated dealer management systems and seamless IT services continues to grow.

Furthermore, transnational dealership groups are increasingly seeking uniform solutions across regions to streamline operations and improve customer experiences. This trend positions full-service IT partners, like CARYA, at the forefront of addressing these industry needs through strategic alliances and acquisitions.

The partnership between CARYA and Softmotive comes at a pivotal time, as automotive businesses aim to enhance their digital offerings and maintain their competitive edge in a rapidly changing market landscape.

The Rationale Behind the Deal

The acquisition of Softmotive aligns with CARYA's expansion strategy, which was outlined following its partnership with Pride Capital Partners in December 2022. By bringing Softmotive into its fold, CARYA not only strengthens its operational capabilities in Switzerland but also broadens its service portfolio to include well-established expertise in managing premium brands, such as BMW and Mercedes-Benz.

This strategic move is designed to elevate CARYA's position in the European market and enhance its capabilities in serving automotive dealerships, laying the foundation for future growth and expansion.

Information About the Investor

CARYA, headquartered in Puurs-Sint-Amands, Belgium, was founded in 2006 and has grown to employ over 100 experts in the field. The company focuses on delivering integrated IT solutions catering to the unique needs of automotive dealerships. Its comprehensive offerings include hardware and software solutions, professional marketing services, and add-on software development for incadea's Dealer Management System.

Pride Capital Partners, a financial and strategic partner of CARYA, plays a crucial role in supporting CARYA's expansion plan. Their investment has facilitated the successful acquisition of Softmotive, positioning CARYA to effectively serve a wider range of clients in the European automotive sector.

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The acquisition of Softmotive by CARYA presents a promising opportunity for growth and market consolidation within the European automotive IT services sector. With CARYA's established infrastructure and Softmotive's specialized expertise, the combined entity is well-equipped to address the evolving needs of dealerships.

Moreover, this strategic acquisition can potentially increase CARYA's market share, particularly in the premium automotive segment where Softmotive excels. By expanding its service offerings, CARYA is positioned to provide enhanced value to its existing clients, fostering loyalty and satisfaction.

However, the success of this venture will depend on the effective integration of Softmotive into CARYA's operations. Leveraging Softmotive's existing relationships and expertise will be essential to maximizing the benefits of this acquisition.

Overall, this acquisition aligns with market trends prioritizing digital transformation in the automotive sector, making it a strategically sound investment for CARYA as it continues to scale its operations across Europe.

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