Target Information

Connectic, an IT company based in Ridderkerk, has successfully joined forces with its industry counterpart, Nemesys ICT Group, which is part of Techone and Nedvest. Founded over twenty years ago by Maurice de Bruijn, Connectic has evolved into a reputable Managed Services Provider (MSP), boasting an impressive client list that includes Bakker Bart, RWG, and MSR Verhuur. The company has built a strong reputation in the region, offering a wide array of workplace management services, such as internet, cloud solutions, voice over IP (VoIP), and technical support.

Employing a dedicated team of approximately ten IT professionals, Connectic has achieved considerable growth in recent years, coupled with strong profitability. The partnership with IRIS Corporate Finance began in late 2022, focusing on financial insights and exploring various options for future growth. De Bruijn noted, “The experiences of IRIS CF in the IT sector have been invaluable in understanding the critical factors buyers consider during acquisitions and how we can optimize value.”

Industry Overview

The ICT sector in the Netherlands is flourishing, driven by the increasing demand for innovative technology solutions and robust cybersecurity measures among businesses. As companies prioritize digital transformation, the need for expert IT services has become paramount. This has led to a dynamic merger and acquisition landscape, with many players seeking strategic partnerships to enhance their service offerings.

In recent years, the market has witnessed significant consolidation, as independent IT service providers seek to expand their capabilities through acquisitions. Notably, Techone, as part of its growth strategy, has conducted approximately 30 acquisitions within the IT and telecom landscape, positioning itself to capture a larger share of the market.

With the growing emphasis on cybersecurity and integrated IT solutions, organizations in the ICT sector are increasingly combining forces to better serve their customers. Notably, large entities, often supported by private equity firms, are actively employing buy-and-build strategies, further fostering a competitive M&A market.

The entry of companies like Nemesys into the market enhances competition by providing diverse and complementary IT services to clients. Such collaborations not only strengthen the service portfolio but also extend the reach of these companies deep into various sectors.

Rationale Behind the Deal

The acquisition of Connectic is strategically significant for Nemesys as it aligns with their growth ambitions in the ICT and cybersecurity domain. By integrating Connectic’s client-oriented services and expertise into Nemesys’ existing framework, the organization aims to bolster its market position and expand its customer base with new local enterprises. This merger is expected to enhance the overall service provision to clients, ensuring comprehensive support in their digital journeys.

Niek Pegels, General Director of Nemesys, stated, “With the acquisition of Connectic, we enhance our offering and expand our capabilities to support clients in their digital transformation.” This reflects a clear alignment of goals and a shared vision for future success.

Investor Information

Nemesys is a reputable independent IT service provider catering to the small and medium-sized enterprises (SME) sector in the Netherlands. Operating from a national network, each branch possesses unique identities and specialties, allowing for the delivery of a comprehensive spectrum of ICT services to clients. Backed by Nedvest, Nemesys is focused on expanding its operational capacity through strategic acquisitions, including the recent integration with Connectic.

The strategic partnership with Techone provides Nemesys with additional resources and operational support, and strengthens its foundation in the competitive ICT landscape. The acquisition reflects a continued commitment to meeting the IT needs of SMEs while positioning the organization favorably for future growth.

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Evaluating this acquisition, it appears to be a sound investment for both Nemesys and Connectic. The integration of Connectic’s established reputation and existing client relationships will undoubtedly contribute to Nemesys’ growth strategy. In an industry ripe for consolidation, this partnership offers significant advantages amid a highly competitive environment.

From an investment perspective, Connectic brings valuable assets and expertise to Nemesys, fostering a collaborative environment that promotes service enhancement and innovation. The synergies achieved through this merger have the potential to create a formidable player in the market, particularly as demand for comprehensive ICT solutions continues to rise.

Moreover, the strong alignment of values and operational goals between Connectic and Nemesys suggests that this acquisition will facilitate a seamless transition, maintaining the high standard of service clients expect. This strategic move not only strengthens the service offerings but also enhances the overall competitive edge of both entities.

In conclusion, this acquisition is poised to yield mutual benefits, positioning both companies favorably for future growth and success in the ICT sector.

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