Target Company Overview

H.I.G. Capital has successfully sold EYSA Group, a leading provider of smart mobility solutions based in Spain, to Tikehau Investment Management. Under the new ownership, EYSA's management team will remain in place to further drive the company’s growth strategy and ensure continuity in leadership.

H.I.G. Infrastructure initially acquired EYSA in May 2022, with the goal of transforming the company from a local parking operator into a prominent global mobility platform. The firm supported five strategic acquisitions and introduced innovative, sustainability-focused, and AI-enabled services. This investment significantly strengthened EYSA's operational infrastructure and international presence.

Industry Overview in Spain

Spain's mobility sector is experiencing rapid transformation, driven by advancements in technology and a growing demand for sustainable transport solutions. The country's urban centers are increasingly prioritizing smart mobility initiatives, influencing the shift towards eco-friendly transportation options and enhancing the overall efficiency of urban transport systems.

Alongside the global trend towards electric vehicles and sustainable practices, Spain has recognized the importance of integrating mobility services to reduce congestion and improve urban air quality. This recognition has been further stimulated by government policies promoting sustainable development in cities.

The rise of intelligent transportation systems (ITS) within Spain has also gained attention, with cities implementing smart traffic management solutions and mobility as a service (MaaS) applications. These innovations aim to facilitate better connectivity and decrease reliance on private vehicles.

As a result, companies like EYSA, which focus on smart mobility solutions, stand poised to benefit significantly from this evolving landscape, presenting lucrative opportunities for investors and stakeholders alike.

Rationale Behind the Deal

The decision to sell EYSA to Tikehau Investment Management was primarily driven by H.I.G. Capital's strategic value-add approach, which centered on operational enhancements and a comprehensive growth strategy. During H.I.G. Capital's ownership, EYSA successfully doubled its EBITDA and expanded its international footprint.

The sale reflects the company's robust performance, which permitted H.I.G. to realize their investment in just three years, instead of the typical five-year holding period. The strong exit signals confidence in EYSA's continued growth potential in the smart mobility market.

Investor Information

Tikehau Investment Management, the buyer of EYSA, is a global alternative asset management firm with a strong focus on private equity, real estate, and debt investments. Tikehau is well-regarded for its diverse investment strategy and ability to identify and leverage growth opportunities in various sectors. Their commitment to sustainability aligns with EYSA's operational ethos and strategic goals.

Through this acquisition, Tikehau gains access to EYSA's innovative smart mobility solutions, significantly enhancing their portfolio in a sector marked by continuous demand for sustainable and tech-driven transportation options.

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This deal appears to be a strategic and timely investment for Tikehau, given the rising relevance of smart mobility solutions in urban environments. H.I.G. Capital's successful transformation of EYSA into a global player provides a strong foundation for Tikehau to further build upon.

With sustainability becoming a paramount focus in the mobility sector, EYSA is positioned to capitalize on this trend and expand its service offerings in high-growth markets. Tikehau's leadership may further enhance EYSA's capabilities, enabling it to leverage emerging opportunities in smart transportation.

However, the market is inherently competitive, and the challenge will be to sustain growth amidst evolving technologies and consumer preferences. Tikehau will need to continue its focus on innovation and operational efficiency to ensure EYSA remains at the forefront of the industry.

In summary, this investment could be highly beneficial, provided that Tikehau can effectively navigate the competitive landscape while driving EYSA's vision for sustainable development in mobility solutions.

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