Information on the Target

Sonae Investment Management (Sonae IM), the technology investment division of Sonae, has successfully acquired a majority stake in Excellium, a prominent managed security services provider based in Luxembourg. Excellium, which also operates in Belgium, boasts a team of over 100 experts and is recognized for its professional and managed cybersecurity services.

The company is particularly known for its proprietary Security Operations Center (SOC) solution, Eyeguard, which positions it as a market leader within the Luxembourgish and Belgian cybersecurity markets. Excellium serves a diverse and prestigious clientele that includes prominent financial institutions, governmental agencies, and significant economic groups active in the Benelux region.

Industry Overview in Luxembourg

The cybersecurity industry in Luxembourg is characterized by a growing demand for advanced security solutions, driven by an increase in cyber threats and a greater awareness of the importance of data protection. Luxembourg has positioned itself as a hub for technology and innovation in Europe, attracting numerous cybersecurity firms that are looking to capitalize on the strategic location of the country within the European market.

As a member of the European Union, Luxembourg benefits from extensive collaboration between governmental agencies and private sectors aiming to enhance national cybersecurity measures and policies. This partnership is crucial in establishing a robust cybersecurity framework that can support businesses in safeguarding their digital assets.

In recent years, the complexity and frequency of cyber incidents have surged, forcing organizations to invest heavily in managed security services. The growth of the cybersecurity sector is expected to accelerate, as companies recognize that a proactive security posture is essential to mitigate the risks associated with cyber threats.

Additionally, businesses operating in Luxembourg are increasingly prioritizing compliance with stringent EU regulations, which further emphasizes the need for reliable cybersecurity solutions. Consequently, the demand for specialized cybersecurity services is poised for significant growth, presenting ample opportunities for companies like Excellium.

The Rationale Behind the Deal

This acquisition allows Sonae IM to significantly enhance its cybersecurity offerings by aligning Excellium's expert capabilities with those of S21sec, a leading cybersecurity provider in Iberia with a firm foothold in Latin America. The complementary nature of both companies will result in a more comprehensive portfolio of services and technologies, ensuring that clients gain access to an integrated and innovative suite of cybersecurity solutions.

The ongoing escalation in the activity and sophistication of cyber threats makes this transaction crucial. By expanding their capabilities together, Sonae IM and its subsidiaries position themselves to better combat cybercrime and meet the growing demand for specialized cybersecurity services across Europe.

Information About the Investor

Sonae Investment Management is the investment arm of Sonae, a renowned retail and financial services company headquartered in Portugal. With a focus on technology companies, Sonae IM seeks to invest in innovative firms that have the potential for leading positions in their markets. Through strategic acquisitions, Sonae IM aims to propel growth and maximize value for its stakeholders, leveraging synergies between its portfolio companies.

The organization's deep commitment to developing a resilient technology ecosystem positions it favorably in the ever-evolving landscape of cybersecurity. Sonae IM’s strategic foresight in identifying key players in the industry emphasizes its intent to build a solid foundation for long-term success.

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The acquisition of Excellium by Sonae IM appears to be a sound investment decision, considering the increasing significance of cybersecurity in today’s business environment. As organizations increasingly prioritize cybersecurity, this transaction strengthens Sonae IM's positioning within a fragmented yet growing industry.

Combining the strengths of Excellium and S21sec allows the combined entity to offer a robust range of services, enhancing its market competitiveness. Furthermore, the integration of two leading cybersecurity teams fosters an environment for innovative solutions that can address evolving threats.

Moreover, with the substantial presence of both companies across Europe, they are well-equipped to cater to the demands of large, multi-national corporations needing swift and specialized cybersecurity responses. This strategic advantage could lead to accelerated growth and an expanded client base.

Overall, given the ongoing global emphasis on cybersecurity and the strategic fit of this acquisition, Sonae IM’s investment in Excellium is likely to yield positive long-term results, positioning the group as a significant player in the European cybersecurity market.

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