Target Information

In 2014, the investment fund MGF acquired a minority stake in Locatus, a research firm specializing in retail and location data, with the aim of accelerating its growth. Over the years, Locatus has experienced significant development, and now the management team of Locatus is in the process of purchasing all shares from the investment fund MGF. Both parties are satisfied as they reflect on a productive and successful collaboration.

Gerard Zandbergen, CEO of Locatus, remarked, “Living, working, and shopping are increasingly interconnected. Locatus aims to provide organizations with a singular source for all their location-related data needs. With this revised focus, Locatus introduced a new database for all housing projects in the Netherlands in 2022, and a comprehensive office database is set to launch in mid-2023. The participation of MGF has facilitated this expansion into databases. MGF not only provided the financial resources necessary for investment and growth but also served as a knowledgeable and enjoyable partner. I look back on this fruitful collaboration with great satisfaction, and I am pleased to buy them out alongside my fellow management team members, Gertjan Slob and Björn Jansen.”

Industry Overview in the Netherlands

The Netherlands' retail industry is increasingly competitive, driven by evolving consumer preferences and the rise of e-commerce. Retailers are continuously adapting their strategies to meet the changing demands of consumers, which has led to a heightened focus on data analytics to optimize operations and enhance customer experiences. As businesses adapt to these dynamics, the need for reliable data sources has become paramount.

In recent years, the property landscape has also undergone transformations, with more emphasis on sustainability and multifunctional spaces. Real estate developers and investors are seeking comprehensive data that not only reflects current market conditions but also forecasts future trends. This paradigm shift in data-driven decision-making has bolstered the role of firms like Locatus, which provide essential insights into retail and property data.

Furthermore, the integration of location data into business strategies is becoming more prevalent, as organizations strive to enhance their competitive edge. The growth of smart cities and urban planning initiatives has highlighted the need for precise location analytics, which further expands the market opportunities for data providers in this sector.

As the industry continues to evolve, firms that can leverage advanced analytics and provide rich, actionable insights will thrive in the dynamic Dutch market. Locatus is strategically positioned to meet these increasing demands with its comprehensive datasets.

Rationale Behind the Deal

The rationale behind Locatus’s acquisition of MGF’s shares stems from the company's successful trajectory and its ambition to continue expanding its footprint in the location data market. By taking full ownership, Locatus intends to streamline its operations and enhance its strategic independence, allowing for more agile decision-making and execution of growth plans.

This buyout also reflects the management's confidence in their abilities to drive the company forward without external investment pressures. The strong foundation laid during the partnership with MGF has equipped them with the necessary insights and infrastructure to realize their future growth ambitions.

Information About the Investor

MGF is an investment fund known for its focus on empowering companies in the data and technology sector. With a reputation for fostering growth through strategic partnerships, MGF has successfully supported numerous organizations in expanding their operations and achieving their business objectives.

Investment manager Heimen Smit expressed confidence in Locatus’s leadership, noting, “Locatus has developed strongly as a market leader in various domains, having expanded its service offerings and sharpened its geographical focus on the Benelux region. The company has also established a robust organizational structure, prioritizing innovation and employee satisfaction. We have tremendous faith in the current team to further realize their growth ambitions.”

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The deal between Locatus and MGF represents a significant milestone for the company, as it transitions from external investment to full ownership. This decision is anticipated to provide Locatus with greater control over its strategic direction and the agility to adapt to market changes without external constraints. From an investment perspective, this could be seen as a prudent move, showcasing management's confidence in their growth strategy.

Moreover, the competitive landscape in the Dutch retail and real estate sectors presents ample opportunities for a data-focused firm like Locatus. The recent advancements in their database offerings suggest a proactive approach to market demands and a commitment to enhancing their value proposition.

Overall, while the buyout entails risks inherent to independent operations, the potential for growth fueled by the company's recent initiatives and its established market position suggests it could be a favorable investment decision. The ongoing expansion into new data domains underlines a forward-looking strategy that may attract further interest from stakeholders in the long term.

In conclusion, this transaction not only solidifies Locatus's market position but also highlights their ambitious plans for future growth. Provided they continue to innovate and expand their data capabilities, this deal could yield significant returns for both the management team and shareholders.

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