Highlights

  • Having reached a five-year low in deal activity in Q2 2020 - due to transactions put on hold while GPs shifted their focus toward stabilising existing portfolio companies and providing operational support - private equity buyout activity has since increased with Q4 2020, close to 2019 levels in terms of deal volume and value[1]
  • This positive trend has continued in Germany throughout the first quarter of 2021 driven by what we believe are, the most Covid-resilient sectors - TMT, Healthcare and Infrastructure
  • Fundraising has been especially strong in the German mid-market private equity landscape with a number of funds having crossed the €1bn threshold[2]
  • With full-year results in the books and visibility on Q1 2021 performance, numerous private equity portfolio companies are currently prepared for exit and are expected to hit the market in Q2 2021
  • Against the backdrop of a slow rollout of the Covid-19 vaccination programme in Germany, the new US presidency, and Brexit finally coming to a close, private equity investors are demonstrating an overwhelmingly bullish outlook for the industry. We expect this relatively optimistic dynamic to continue over the coming months, making 2021 an overall robust deal-making year for private equity in Germany
  • However, with dry powder levels still at all-time highs, a low-interest rate environment, and promising new opportunities arising in the market, we expect the hunt for high-quality assets to remain very competitive, prompting many private equities in Germany to pursue platform acquisition strategies to add additional value to existing portfolio companies[3]

Key deals [4]

Business & Tech-Enabled Services

  • Silverfleet has agreed to acquire EC4U Expert Consulting, a German-based computer IT consultancy company, and Bulpros Consulting, a Bulgarian-based IT consultancy company, for an undisclosed consideration
  • Findos Investor has agreed to acquire Karriere Tutor, a German-based provider of online training, for an undisclosed consideration

Consumer, Leisure & Retail

  • EMZ Partners has agreed to acquire Celebrate Company, a German-based personalised stationery and photo products business, for an undisclosed consideration

Healthcare

  • ArchiMed has agreed to acquire 42 life sciences, a German-based developer and manufacturer of reagents for immunohistochemistry and in situ hybridization applications, for an undisclosed consideration

Industrials Products & Services

  • Goldman Sachs, has agreed to acquire Oikos Group, a GY based provider of prefabricated house construction, from Equistone Partners Europe, for an undisclosed consideration

TMT

  • TA Associates Management has agreed to acquire IGEL Technology, a German-based international software company that provides next-gen OS for cloud workspaces, for an undisclosed consideration

2014 – 2021 YTD total deals in the DACH region, by sector [5]

 

Go back to DC Advisory’s European Mid-Market Private Equity Round-Up >

 

References

[1] Global Private Equity Report, Bain & Company, 2021

[2] M&A Explorer, Whitecase, 5 April 2021

[3] 2021 Global Private Equity Outlook, S&P Global, 2 March 2021

[4] All DACH deals sourced from: Q1 2021 European mid-market deal report, Mergermarket, 04 March 2021 (criteria available on request)

[5] DACH graph sourced from: Q1 2021 European mid-market deal report, Mergermarket, 04 March 2021 (criteria available on request)