Information on the Target

Liberta Partners has announced the acquisition of ght GmbH Elektronik im Verkehr ("ght"), a prominent player in the automotive services sector. ght will be integrated into a holding structure alongside Kienzle Automotive GmbH ("Kienzle"), which has been part of Liberta's portfolio since 2020. Both companies have a robust offering in products and services related to digital and analog tachographs. With a combined workforce of 186 employees across 13 locations in Germany, they are recognized as the largest VDO distribution companies in the industry.

Under this new arrangement, Herbert Werthner, the managing director of ght, will assume the role of CEO and co-owner of Kienzle Beteiligungs GmbH ("Holding"). Cornelius von Plessen, the financial chief of Kienzle Automotive, is set to become the CFO of the Holding. The integration aims to leverage their unique strengths, with Liberta Partners contributing operational and strategic know-how to drive investments into future technologies, enhancing growth potential.

Industry Overview in Germany

The automotive services industry in Germany is characterized by a strong demand for telematics systems and services that manage vehicle fleets. With a focus on innovation and evolving consumer preferences, companies that provide integrated solutions for fleet management and data analysis are thriving. The regulatory environment encourages advancements in technology, making it imperative for businesses to stay ahead of the curve.

Among the key drivers of growth in this sector are the increasing complexity of vehicle systems and the need for actionable data. The market for digital tachographs and information management systems is expanding, supported by legislation that mandates the use of telematics for commercial vehicles. This offers businesses significant opportunities for cross-selling and upselling integrated services.

Moreover, the interplay between automotive services and data management is becoming increasingly crucial. Firms that can provide tailored data solutions alongside their traditional services are likely to gain a competitive edge. As a result, strategic mergers, acquisitions, and collaborations are on the rise, further consolidating the market.

In Southern Germany, particularly in Bavaria, ght has established itself as a leading provider of telematics solutions for commercial fleets, further broadening its appeal through its expertise in cash register systems and access control systems, which enhances its market positioning.

The Rationale Behind the Deal

The primary motivation for this transaction is the strategic alignment between ght and Kienzle, both of which are leaders in the automotive services market. Their combined strengths create significant opportunities for growth in telematics and system technology, providing a comprehensive suite of services that cater to a diverse range of client needs. Liberta Partners aims to capitalize on the synergies between these firms to foster internal growth while exploring external acquisition opportunities.

Additionally, the partnership is set to enhance the companies’ capabilities in future technology investments. By joining forces, Kienzle and ght can accelerate their product offerings and innovate at a pace that is suitable for the rapidly changing automotive landscape.

Information about the Investor

Liberta Partners, established in 2016 and headquartered in Munich, is a multi-family holding company focused on investing in firms within the German-speaking region. The investment strategy emphasizes operational and strategic growth potential, particularly in succession situations and corporate spin-offs. Liberta Partners brings a wealth of experience and insights, leveraging its “100% Core & Care” philosophy to ensure sustainable development of its portfolio companies.

The Liberta Partners Fund II, which closed in October 2019, marks this transaction as its fifth investment. The fund is committed to supporting its portfolio companies not just financially but by fostering their operational development to realize their full potential.

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This merger appears to be a promising investment opportunity for Liberta Partners as it strategically consolidates two market leaders within the automotive services sector. The combined operational strengths and complementary service offerings of Kienzle and ght are poised to create substantial value, particularly in emerging areas such as telematics and data management.

Furthermore, the backing of Liberta Partners, which emphasizes growth-oriented strategies, should enable both companies to pursue aggressive growth plans and capitalize on market opportunities. The potential for cross-selling and enhanced service integration positions the merged entity well within a competitive landscape increasingly reliant on data-driven decisions.

However, as with any merger, there are inherent risks, including the integration of corporate cultures and operational systems. The success of this investment will largely depend on how effectively the two companies can merge operations while maintaining their respective strengths and service quality.

Overall, this merger represents a strategic move that not only strengthens the market position of both companies but also aligns with the broader trends within the automotive services industry, suggesting that it will yield positive returns for Liberta Partners in the long run.

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