Information on the Target

Passman, established in 1995, is a leading provider of connected solutions within France and Belgium, primarily serving hospitality establishments, including traditional and open-air hotels, as well as healthcare facilities such as nursing homes and hospitals. The company also caters to the military and retail sectors, offering a comprehensive suite of digital solutions that include Wi-Fi, TV/IPTV, and digital signage, among others. By positioning itself as a 'one-stop shop,' Passman delivers tailor-made, multi-technology network management solutions to over 6,000 establishments.

In recent years, the company has strategically expanded its international footprint and enhanced its presence in the healthcare sector, notably through the acquisition of two Belgian companies, Screen Services (2018) and Taktik (2021), which specialize in IPTV and digital signage solutions. Additionally, Passman has ventured into the Climate Tech ecosystem with its innovative IoT solution, Pass Energy, designed for automated energy performance management, demonstrating significant potential for energy savings of 30% to 40%.

Industry Overview in France and Belgium

The hospitality and healthcare industries in France and Belgium are experiencing notable growth, driven by increasing demand for digital solutions that enhance customer experience and operational efficiency. The influx of technology in these sectors is transforming traditional service models, requiring establishments to adapt to new trends in connectivity and digital engagement.

In recent years, the push for digitization has led to the adoption of advanced network solutions, particularly in hotels and healthcare facilities that prioritize seamless communication and information access. This trend is expected to continue, with a rising emphasis on customer-centric platforms that leverage technology for improved service delivery.

Furthermore, the Climate Tech sector is gaining momentum as establishments increasingly seek sustainable solutions to address rising energy costs and regulatory pressures. The integration of IoT technologies for energy management is becoming a priority, presenting significant opportunities for companies like Passman that offer tailored solutions for energy efficiency.

As these industries evolve, the demand for comprehensive network management solutions will likely rise, presenting a favorable environment for companies positioned to meet these needs. The ongoing shift towards digitalization and sustainability underscores the potential for significant growth and investment opportunities in this space.

The Rationale Behind the Deal

The acquisition of a majority stake in Passman by Siparex ETI enables the company to capitalize on its current growth trajectory in dynamic markets, particularly in the hospitality and healthcare sectors. This strategic partnership will foster further expansion and innovation while allowing LBO France to exit, ensuring that Passman continues to enhance its market presence.

The involvement of Andera Partners, the historic shareholder, showcases their continued confidence in the management team and the company’s growth prospects. The reinvestment from Andera alongside the founding directors and principal managers, affirms a strong commitment to pursuing aggressive growth strategies, including potential acquisitions across Europe.

Information about the Investor

Siparex ETI is known for its expertise in supporting mid-market companies in achieving their strategic objectives. Its acquisition of a majority shareholding in Passman is aligned with its investment philosophy, focusing on sectors that are poised for expansion and technological advancement. The firm brings a wealth of experience in facilitating change and enhancing operational scalability for growth-oriented businesses.

Florent Lauzet, Managing Partner at Siparex ETI, expressed confidence in Passman’s leading position within dynamic markets, highlighting the company's technical expertise and growing service dimension. Siparex is committed to implementing a targeted acquisitions strategy and supporting management in scaling the operations of the Passman Group.

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The investment made by Siparex ETI in Passman appears to be a strategic move that aligns well with industry trends and the company’s growth potential. The hospitality and healthcare sectors are increasing their reliance on digital solutions, which positions Passman favorably to capitalize on this momentum. The combination of Siparex’s investment with the innovative Pass Energy solution and other digital services strengthens Passman’s offering.

Additionally, the existing relationship between Siparex and Passman’s management team is a beneficial factor. Such familiarity can foster smoother integration and more effective strategic execution, which is crucial for achieving desired growth targets. This synergy is likely to enhance Passman’s ability to explore further acquisitions across Europe, thereby expanding its market reach.

Overall, the deal represents a timely opportunity for both Siparex and Passman to leverage their complementary strengths, fostering innovation and growth within the connected solutions market. As Passman continues to strengthen its presence in the hospitality and healthcare sectors, it is likely to attract further interest from investors, indicating a healthy trajectory for future development.

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