Information on the Target

H.I.G. Capital, a prominent global alternative investment firm with $67 billion in assets under management, has announced a definitive agreement for a strategic investment in TIMETOACT GROUP. TIMETOACT, headquartered in Cologne, Germany, is a leading IT services provider specializing in cloud platforms and digital solutions. With over 1,400 professionals across 22 cities in Germany, Austria, and Switzerland, along with service hubs in Central Europe and Southeast Asia, and subsidiaries in Spain and the United States, TIMETOACT focuses on advising Fortune 1000 companies and public sector clients on IT strategy and advanced technological solutions, including cloud transformation, artificial intelligence, data analytics, and software engineering services.

The commitment of TIMETOACT’s founders and key leadership team—including Felix Binsack, Hermann Ballé, and Frank Fuchs—to reinvest alongside H.I.G. signifies their dedication to the Company's ongoing growth. The company's senior management will remain in charge, ensuring stable client relationships and strategic execution during this transition.

Industry Overview in Germany

The IT services industry in Germany has been experiencing significant growth, driven by an increasing demand for digital transformation across various sectors. As organizations continue to adopt cloud solutions and artificial intelligence, IT service providers are becoming essential partners in enabling this shift. Germany has fostered a robust digital economy, and the government's support for technology initiatives has further stimulated the market.

In recent years, Germany has established itself as a European leader in innovation, with substantial investments flowing into technology and IT companies. The appetite for cloud services is rising, supported by the growing recognition of the benefits that agile IT solutions offer in terms of cost reduction and operational efficiency. This environment creates fertile ground for IT service providers such as TIMETOACT to thrive and expand their market presence.

Moreover, the increasing importance of cybersecurity and data protection regulations is compelling businesses to invest in advanced IT solutions. As organizations seek to comply with these regulations, they often turn to experienced IT partners for help. TIMETOACT's expertise in these areas positions it favorably within the competitive landscape.

The Rationale Behind the Deal

This investment aligns with H.I.G.'s strategy to partner with high-growth technology firms that demonstrate strong growth potential. TIMETOACT's impressive track record of tripling revenue and earnings since 2022 showcases its potential and the effectiveness of its business model. H.I.G. will provide invaluable resources and expertise that will support TIMETOACT's ambitious growth plans and facilitate its expansion into new markets.

Information About the Investor

H.I.G. Capital is a leading global investment firm specializing in private equity and debt with a strong focus on the middle market. With a reputation for successfully partnering with founder-led businesses, H.I.G. has developed an extensive portfolio of companies across various industries. The firm's commitment to working closely with management teams enables them to implement effective growth strategies and enhance operational efficiencies, ultimately driving superior returns.

The depth of experience that H.I.G. brings to the table, particularly in the technology sector, will be instrumental in accelerating TIMETOACT’s growth trajectory. H.I.G. is adept at leveraging its global network to create opportunities that can lead to expanded market share and enhanced competitiveness.

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In evaluating this investment, it is clear that H.I.G. Capital's decision to partner with TIMETOACT is a strategically sound move. TIMETOACT's proven growth, expertise in an increasingly crucial sector, and commitment to innovation align well with H.I.G.'s value creation philosophy. The firm is well-positioned to help propel TIMETOACT toward ambitious growth objectives, particularly as the demand for IT services continues to grow.

This partnership not only promises to benefit TIMETOACT through enhanced resources and networks, but it also reflects H.I.G.'s confidence in the company's future. Given the rising need for digital solutions, the alignment of interests between the management team and the investor provides a strong foundation for long-term success.

However, it will be crucial for both parties to maintain a strong focus on execution and operational excellence as they navigate the complexities of the rapidly changing technology landscape. If managed correctly, this investment could indeed emerge as a significant value driver for both H.I.G. and TIMETOACT in the years to come.

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