Target Company Overview

Carya Group, headquartered in Puurs-Sint-Amands, Belgium, with a satellite office in Vianen, Netherlands, is a prominent all-in-one IT provider for automotive dealerships. Founded in 2006, Carya has established itself as a trusted partner for dealership IT solutions, employing over 100 individuals, primarily based in Belgium. The company provides comprehensive IT services, including hardware, software, telecommunications infrastructure, managed marketing services, CRM solutions, and add-on software development specifically for the Dealer Management System, incadea.

With a strong focus on the Belgian market, Carya has successfully expanded its reach to clients in the Netherlands over the past two years, following the strategic acquisition of a Dutch competitor. Carya serves dealerships representing esteemed automotive brands such as BMW, Mercedes, Peugeot, Opel, and Jaguar/Land Rover. As the automotive dealership market evolves, Carya is poised for significant growth in both organic expansion and strategic partnerships.

Industry Overview in Belgium

The automotive dealership sector in Belgium has shown resilience amid rapid technological advancements and changing consumer behaviors. As dealers increasingly adopt digital solutions to enhance customer experience, the demand for integrated IT services has surged. Both established players and new entrants are competing to offer innovative services that address complex automotive dealership needs.

Moreover, regulatory changes and the push towards digitalization have urged dealerships to invest in sophisticated IT infrastructures. As more dealerships recognize the necessity of a seamless integration of hardware, software, and marketing solutions, the role of specialized IT providers like Carya Group has become increasingly vital. The increasing complexity of vehicle technology and consumer expectations necessitates a strong technological backbone for dealerships.

The market trends suggest a growing emphasis on sustainability and efficiency within the automotive sector, prompting dealerships to seek IT solutions that support these initiatives. Carya's holistic approach to providing integrated IT services positions it well to capitalize on these trends, allowing for the adoption of innovative technologies that enhance operational productivity.

Furthermore, as cross-border trade and international partnerships become more prevalent, Carya's strategic positioning in Belgium and its recent foray into the Netherlands places it at the forefront of opportunities for expansion throughout Europe.

Rationale Behind the Deal

The partnership between Pride Capital Partners and Carya Group is driven by the shared vision for growth and expansion. Carya seeks to leverage external capital and strategic guidance from Pride to pursue additional mergers and acquisitions that will solidify its position as a leading IT service provider for automotive dealerships across Europe. With the increasing opportunities presented in the market, the ambition is to strengthen Carya's offerings while scaling operations internationally.

The involvement of Pride Capital Partners also serves to amplify Carya's internal capabilities, allowing the company to tap into financial resources that will facilitate strategic initiatives aimed at enhancing market presence and expanding technological offerings.

Information About the Investor

Pride Capital Partners is an investment firm focusing on growing companies within the Software and IT services sectors. They employ a unique approach by integrating private debt and equity to provide flexible capital solutions that empower entrepreneurs to fulfill their growth ambitions. Their typical investments involve facilitating company growth, acquisitions, or management buyouts (MBOs), particularly within the Benelux, DACH region, and Nordics.

With established offices in Amsterdam, Cologne, Frankfurt, and a new location in Copenhagen as of 2023, Pride Capital boasts a diverse portfolio comprising notable names in the tech industry. Their commitment to identifying effective growth avenues positions them as an ideal partner for companies like Carya Group, which aspires to expand and innovate in a rapidly evolving marketplace.

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The partnership between Pride Capital Partners and Carya Group presents a compelling investment opportunity, characterized by strategic alignment and growth potential. Carya’s robust foundation and proven track record of servicing automotive dealerships in the Benelux region create a strong impetus for further expansion, especially considering the technological trends shaping the industry.

From an investment perspective, Pride Capital's expertise in providing flexible capital solutions enhances the likelihood of successful outcomes for Carya. Their shared vision of accelerating growth through M&A activity signifies a proactive approach towards capturing emerging market opportunities.

Moreover, Carya's existing management team remains engaged post-investment, ensuring continuity in operation and strategic direction, which is often a critical factor for the stability and success of growth-oriented investments.

In conclusion, this investment could potentially yield significant returns, provided that Carya effectively executes its growth strategy and capitalizes on the burgeoning demand for integrated IT solutions within the automotive dealership market in Europe.

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