Target Information

dacoso GmbH, founded in 2004, is a prominent IT network integrator and data security provider within the DACH region (Germany, Austria, and Switzerland). The company specializes in managed services encompassing optical networks, intelligent networking, and cybersecurity. It operates a certified IT Network & Security Operations Center (SOC) which offers a wide range of services including consulting, integration, and rollout supported by an extensive nationwide field service. With a dedicated workforce of nearly 300 employees, dacoso serves a distinguished clientele that includes numerous blue-chip enterprise clients and carriers, assisting them in interconnecting data centers, network locations, and developing robust carrier backbones while effectively mitigating potential cyber threats.

The company is well-established, generating sales revenue in the hundreds of millions of euros, and has a significant operational presence across twelve locations in Germany, Austria, and Switzerland. The leadership transition, marked by the exiting of founders Thomas Joswig and Horst Pohl along with their sons, will maintain continuity as Felix Pohl steps up as CEO, ensuring the ongoing legacy of the company while focusing on future growth.

Industry Overview

The ICT and cybersecurity sectors are witnessing unprecedented growth across the DACH region, bolstered by escalating digitalization and an increasing reliance on robust network infrastructures. As organizations continue to adopt digital transformation initiatives, the demand for secure IT networks and comprehensive cybersecurity solutions is projected to rise significantly. As a result, established providers like dacoso are well-positioned to capitalize on this trend.

In recent years, businesses in the DACH region have become increasingly aware of potential cybersecurity threats, which has prompted heightened investments in cybersecurity measures. Companies are now prioritizing the establishment of secure ICT frameworks to protect sensitive data and critical infrastructure, leading to substantial growth opportunities within this sector.

The regulatory landscape in the region is also evolving, with authorities emphasizing the importance of cybersecurity in mitigating risks associated with digital infrastructure. Stricter regulations and compliance requirements are driving organizations to seek expert service providers capable of ensuring that they meet these standards, thereby further enhancing the prospects of firms like dacoso.

Additionally, the trend towards internationalization presents a compelling opportunity for growth. As businesses expand their operations across borders, the need for seamless and secure interconnectivity between regions becomes imperative, increasing the relevance of network integration services.

The Rationale Behind the Deal

The partnership with Waterland represents a strategic move for dacoso as it seeks to accelerate its international expansion and solidify its position as a market leader in the ICT and cyber security industry. Waterland, known for its focus on growth-oriented investments in the technology sector, offers both the financial backing and industry expertise that dacoso requires to propel its growth initiatives forward.

This collaboration intends to leverage Waterland's investment capabilities and operational know-how to further develop dacoso’s service offerings and client reach, ensuring that the company remains at the forefront of technological advancements in a rapidly evolving market.

Information About the Investor

Waterland is one of Europe’s leading private equity firms, recognized for its proactive investments in the digitization, IT, and telecommunications sectors. With a diverse portfolio that includes various successful companies across the DACH region, Waterland boasts a strong track record in fostering the growth of emerging technology firms.

The firm is characterized by its commitment to long-term partnerships, enabling companies to achieve their growth potential through strategic guidance and capital investment. Waterland's expertise aligns well with dacoso's operational needs and growth aspirations, making it a fitting partner for the IT service provider's next chapter.

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The strategic union between dacoso and Waterland appears to be a potentially rewarding investment, given the projected growth trajectory of the ICT and cybersecurity markets in the DACH region. Waterland's proven expertise in scaling technology firms can significantly enhance dacoso’s operational capabilities and expand its market reach, providing a solid foundation for sustainable growth.

Furthermore, as cyber threats continue to proliferate, the demand for reliable cybersecurity solutions is poised to soar. dacoso’s established reputation and extensive experience in this space position it advantageously to meet burgeoning client needs. Thus, this deal not only represents an opportunity for financial gain but also aligns with growing market demands.

Investor confidence in dacoso’s business model, bolstered by strong partnerships with blue-chip clients, adds another layer of reassurance regarding the soundness of this investment decision. The continuous focus on enhancing cybersecurity infrastructure will likely yield positive results as businesses prioritize security in their digital transformation efforts.

However, it will be crucial for both dacoso and Waterland to remain agile and responsive to the fast-evolving demands of the ICT sector. If they can adapt to market changes and ongoing technological advancements, this partnership could very well redefine industry standards and create significant value for all stakeholders involved.

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