SECO will acquire the Garz & Fricke group, thus creating the European champion listed on the IoT-IA market
A transformational agreement representing a key step in SECO’s growth strategy
– Massimo Mauri, CEO of SECO
AREZZO, ITALY, October 11, 2021 /EINPresswire.com/ – SECO SpA (“SECO”), a benchmark player in the field of technological innovation, Internet of Things and artificial intelligence solutions, listed on the STAR segment of the Italian Stock Exchange (Ticker: IOT: MI), is pleased to announce that it has entered into a binding agreement to acquire the entire share capital of Garz & Fricke Holding GmbH (“Garz & Fricke Group” or the “Company”), a Hamburg-based producer and developer of hardware and software solutions for the Industrial Internet of Things (IoT), via AF HMI Holding, ultimately controlled by Afinum Siebte Beteiligungsgesellschaft mbH & Co. KG, advised by Afinum Management GmbH (“Afinum”), and other minority shareholders as co-owners of 100% of the share capital of the Company (the “Sellers”). The total consideration amounts to 180 million euros and includes a cash consideration of 165 million euros and 15 million euros of newly issued SECO shares, as described in the following paragraphs.
Founded in 1992, the Garz & Fricke group is a leading provider of standard and custom human-machine interface (HMI) solutions, their building blocks and a bespoke ecosystem of IoT, software and payment solutions. . The company was acquired by Afinum in 2017 and has expanded its activities under its ownership by making two strategic acquisitions in the area of edge systems and software applications. Today, the Garz & Fricke group operates under three complementary brands: “Garz & Fricke” (HMI solutions), “Keith & Koep” (systems on module) and “e-GITS” (software and platform).
For the full year ending December 2021, the Garz & Fricke group is expected to generate around 45 million euros in revenue and adjusted EBITDA in excess of 10 million euros. In addition, by the end of the year, the company plans to manage more than 65,000 active IoTs and 39,000 payment installations, which represents a clear opportunity to deploy SECO CLEA software in the group’s installed IoT devices. Garz & Fricke. In addition to components, the company focuses on perfectly integrated and customized systems. These are implemented on the basis of standard or individually tailored solutions. Regular customers include OEMs and system integrators from target verticals including medical and laboratory technology (MedTech / LabTech), professional kitchen equipment, vending machines and diversified industries. All products are made in Germany in the company’s two modern production plants.
The Garz & Fricke group has a strong technological footprint with around 28% of the workforce in R&D, out of a total of around 190 employees as of September 2021. The company is headed by CEO Stefan Heczko.
Massimo Mauri, CEO of SECO, said: “The acquisition of the Garz & Fricke group is a milestone for SECO’s growth plan and a unique opportunity to continue to create value for our shareholders and customers, in accordance with the strategy that we presented to the market. earlier this year during the IPO process. We see the acquisition of the Garz & Fricke group as a key step in strengthening our position as a European and global leader, strengthening our strategic access to a key market like Germany and further accelerating the adoption of CLEA on a customers, as well as adding skills and technologies to our product portfolio in order to continue to offer the highest standards of quality and service to our customers. Finally, we look forward to welcoming the management team and all the people of the Garz & Fricke group into our organization and integrating them into our project.
Stefan Heczko, CEO of Garz & Fricke Group, commented: “This combination is an ideal strategic fit and will allow our customers to benefit from the development of a broader product offering and improved operations, integrating the group’s existing solutions. Garz & Fricke in technologies and operational platform. SECO and the Garz & Fricke group are both leading players in the field of HMI / Edge solutions as well as leading developers of industrial IoT systems. We are delighted to be part of this new journey and to help further accelerate SECO’s growth trajectory.
– STRENGTHENS STRATEGIC PRESENCE IN THE DACH REGION, ONE OF THE MOST ATTRACTIVE MARKETS IN IOT / AI AND EDGE COMPUTING
– SIGNIFICANT VALUE CREATION THANKS TO THE UNIQUE STRATEGIC ADJUSTMENT AND THE STRONG POTENTIAL FOR SYNERGY
– MORE THAN 200,000 DEVICES PRODUCED ANNUALLY (INCLUDING C.65,000 ALREADY USING IOT CONNECTIVITY SOLUTIONS) TO FURTHER ACCELERATE THE DEPLOYMENT OF THE CLEA PLATFORM IN GERMAN COUNTRIES
– VERY COMPLEMENTARY ON ALL OPERATIONAL METRICS, WITH A SIMILAR FINANCIAL PROFILE (EBITDA MARGIN 20% +)
– BRINGS A HIGH QUALITY TEAM LEAD BY STEFAN HECZKO, CEO OF GARZ & FRICKE GROUP, STRENGTHENING SECO’S TALENT POOL
– CLEAR AND DEFINED INTEGRATION PLAN TO BE CARRIED OUT OVER THE NEXT 18 MONTHS
SECO (IOT.MI), listed on the Italian Stock Exchange (STAR segment), develops and manufactures cutting-edge technological solutions, from miniaturized computers to fully customized integrated systems combining hardware and software. SECO also offers CLEA, a proprietary end-to-end IoT-AI analysis software suite, available on a SaaS basis, which enables customers to collect relevant data from their devices in the field in real time. SECO employs more than 500 people worldwide and operates through 3 production plants, 6 R&D centers and sales offices in 9 countries. With revenues of over € 75 million as of December 31, 2020, SECO serves more than 200 blue chip customers who are leaders in their respective fields, including medical, industrial automation, aerospace and defense, fitness, sales and many other sectors. . SECO’s R&D capabilities are further strengthened through long-term strategic partnerships with technology giants and collaborations with universities, research centers and innovative start-ups. Corporate social responsibility is part of SECO’s strategy, which undertakes several actions to reduce its environmental footprint and increase its impact on its people and local communities.
For more information: http://www.seco.com/
Marco Parisi, Head of Investor Relations
+39 0575 26979