Information on the Target

Econocom has successfully completed its first year under the One Econocom strategic plan, achieving its annual growth targets and demonstrating the effectiveness of the transition it has implemented. The Group has focused on bolstering its sales force by hiring over 60 new professionals and investing in staff training. Additionally, Econocom has enhanced collaboration across its various business lines, solutions, and geographical regions, introducing new strategic initiatives such as the launch of Gather, its new European brand aimed at the audiovisual, unified communications, and information markets.

In January 2025, Econocom expanded its operations in Germany by acquiring an 80% stake in bb-net, a leading IT refurbishment firm based in Schweinfurt. This acquisition, which involved its founder Michael Bleicher and CEO Marco Kuhn, underscores the Group's commitment to the circular economy in Europe and establishes its position in a growing market. In 2024, bb-net achieved revenues of approximately €17 million and employed around 50 staff, showcasing its high-quality refurbishment capabilities and successful sales model through its TecXL brand.

Industry Overview in Germany

The technology sector in Germany is characterized by robust growth and innovation, driven by increasing demands for sustainable IT solutions. As enterprises prioritize cost efficiency and environmental impact, the market for IT refurbishment and circular economy practices is gaining traction. Firms are actively seeking partners who can offer comprehensive refurbishment services that contribute to their sustainability goals.

Germany has experienced a gradual shift towards a circular economy, wherein resources are reused and recycled efficiently. The IT refurbishment industry is benefiting from this trend, as companies like bb-net are leading the way in providing environmentally responsible solutions. This landscape presents opportunities for strategic acquisitions and partnerships that align with sustainability objectives.

Moreover, the growing importance of digital transformation continues to catalyze investment in IT solutions. As organizations adapt to technological advancements, the demand for refurbished equipment that meets current standards while being cost-effective is expected to increase. The German market, being one of the foremost technology hubs in Europe, is well-positioned to capture this demand.

In summary, the convergence of sustainability imperatives and technological advancements in Germany presents a favorable environment for players within the IT refurbishment sector. Companies are recognizing the competitive advantage that comes from adopting circular economy practices, thereby elevating the importance of strategic investments in this arena.

The Rationale Behind the Deal

The acquisition of bb-net is a strategic maneuver for Econocom, aligning seamlessly with the objectives of the One Econocom strategic plan. The move aims to deepen Econocom's footprint in the circular economy and enhance its service offerings within IT refurbishment, an area experiencing significant growth due to rising environmental conscious behavior among consumers and businesses.

This acquisition not only bolsters Econocom’s operational capabilities but also provides access to bb-net's established brand and customer base, offering significant cross-selling opportunities. As the demand for sustainable technology solutions continues to rise, the integration of bb-net into Econocom’s portfolio is expected to drive future revenue growth and reinforce the Group’s commitment to sustainability.

Information about the Investor

Econocom Group is a prominent player in the digital transformation and IT services sector, with a diversified portfolio consisting of IT products, solutions, and financing services. The Group operates across multiple countries in Europe, demonstrating a strong commitment to innovation and sustainability. With its comprehensive offerings, Econocom is well-respected for its customer-centric approach and operational excellence.

Under its One Econocom strategic plan, the Group has outlined ambitious growth and sustainability targets. Having secured notable achievements in financial performance and social responsibility, Econocom is positioned to leverage potential opportunities as it continues to adapt to evolving market demands and technological advancements.

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The acquisition of bb-net by Econocom is a commendable strategic decision that expands the company's capabilities in a rapidly growing market. By enhancing its presence in the IT refurbishment sector, Econocom is poised to capture increased demand for sustainable and cost-effective technology solutions. This alignment with the circular economy showcases the Group's forward-thinking approach, appealing not only to environmentally-conscious consumers but also reinforcing its brand position in the marketplace.

Additionally, the focus on integrating synergies across its business lines is likely to yield operational efficiencies and improved profitability over time. With bb-net’s already established reputation and market presence, Econocom stands to benefit from cross-selling opportunities that can augment its revenue streams significantly.

Moreover, the enhancement of Econocom's overall financial health and reduction of net debt underscores its solid management approach and commitment to sustainability, which may attract further investment and strengthen shareholder confidence. The evident emphasis on CSR initiatives positions the Group favorably in today's market, where corporate responsibility is becoming an essential consideration for investors and consumers alike.

Overall, this acquisition signals that Econocom is not only focusing on immediate financial gains but is also strategically investing in its future. The potential for long-term value creation, coupled with the growing trend towards sustainable IT solutions, makes this investment a wise move for the Group.

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