Target Information

Deutsche Beteiligungs AG (DBAG) is set to invest in MAIT GmbH, a prominent digital transformation partner for mid-market enterprises. The acquisition will be executed through a management buyout (MBO) facilitated by the DBAG Fund VIII. The transaction is expected to close in the fourth quarter, pending regulatory approvals. Specific financial details of the agreement have not been disclosed, but it is noteworthy that MAIT’s management team will significantly reinvest in the company as part of the buyout.

Founded in 1957, MAIT began as an office organization specialist and has evolved into a comprehensive digitalization partner for the manufacturing sector. Based in Rottweil, Germany, the company ranks among the top ten mid-market IT consultancy and software integration firms according to the Lünendonk list. With over 25 locations across Germany, Austria, Switzerland, and the Benelux countries, MAIT employs around 900 professionals and serves approximately 7,000 clients, primarily in mid-market manufacturing. The company offers an integrated portfolio that encompasses Product Lifecycle Management (PLM), Enterprise Resource Planning (ERP), and IT services, which facilitates a digital transformation journey for its customers.

Industry Overview

The PLM and ERP services market, particularly in Germany, is poised for substantial growth, with forecasts predicting an annual growth rate of 9% to 12% up to 2030. This trend is driven by factors such as increasing cost pressures, regulatory requirements, and the need for shorter development cycles. Despite the growing necessity, the penetration of PLM services among mid-market mechanical and plant engineering firms remains relatively low, with only about 50% adoption.

Germany's manufacturing industry is recognized for its global competitiveness, and the demand for digital transformation within this sector is rising. Companies are increasingly focusing on innovative solutions to improve efficiency and data manageability. As industries strive to remain relevant and capitalize on technological advancements, the importance of IT solutions like those offered by MAIT cannot be overstated.

MAIT has built long-standing partnerships with leading technology providers and boasts a successful buy-and-build strategy, having integrated 24 acquisitions to date. This strategic positioning enables the company to not only navigate but also thrive amid the evolving market conditions.

As noted by MAIT's CEO, the partnership with DBAG enhances their capability to leverage their established business model for sustained growth while simultaneously expanding their service offerings, both nationally and internationally. The collaboration aims to enhance further add-on acquisitions, tapping into the fragmented market for greater operational efficiency.

Rationale Behind the Deal

The acquisition by DBAG underscores the rising demand for comprehensive digital transformation services among mid-market companies. By investing in MAIT, DBAG positions itself to capitalize on the promising market conditions and MAIT's established customer base. The strategic fit between DBAG's portfolio and MAIT's offerings emphasizes the importance of technology solutions in driving efficient operations in manufacturing.

Additionally, DBAG believes that MAIT’s recurring revenue model and deep industry expertise present a substantial opportunity for growth. The market for PLM and ERP services holds considerable promise, making this investment strategically advantageous as MAIT seeks to expand and enhance its international presence.

Investor Information

Deutsche Beteiligungs AG is a private equity firm specializing in mid-market companies across the DACH region. With over 50 years of experience in the field, DBAG focuses on utilizing its extensive network and expertise to add value to its portfolio companies. This investment in MAIT is part of DBAG's strategic aim to enhance its presence in the IT services and software sector, which currently constitutes over 20% of its portfolio.

DBAG adopts a selective investment approach, focusing on opportunities that arise even in uncertain market conditions. The firm’s proactive strategy in identifying growth companies is exemplified by the rapid succession of this and other recent transactions, asserting its role as a key player in the German M&A landscape.

View of Dealert

This investment in MAIT by Deutsche Beteiligungs AG is perceived as a promising opportunity amid the current market dynamics. The exceptional growth trajectory anticipated in the PLM services market, coupled with MAIT’s established position, presents a favorable scenario for long-term value creation. Given MAIT’s strong track record of client satisfaction and recurring revenue, the investment aligns well with DBAG’s strategic focus on sustainable growth.

Moreover, the fragmented nature of the market offers ample opportunities for further acquisitions, allowing MAIT, backed by DBAG, to scale its operations effectively. The synergies generated from potential add-on acquisitions could significantly enhance MAIT's operational capabilities and market reach.

Overall, this transaction not only bolsters DBAG's portfolio but also positions MAIT favorably to execute its growth strategies. As it continues to innovate and expand its service offerings, the partnership is likely to foster both immediate and long-lasting benefits for all stakeholders involved.

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