Baker McKenzie supported DBAG Fund VIII, advised by Deutsche Beteiligungs AG (DBAG), in relation to an investment in congatec Holding AG (congatec), a leading provider of computer modules for industrial applications. The closing of the transaction is subject to the approval of the antitrust authorities and is scheduled for the fourth quarter of 2020. The parties have agreed not to disclose the terms of the sale.
Within the scope of a management buyout (MBO), DBAG-advised DBAG Fund VIII will acquire a majority stake from the company's founding shareholders. DBAG itself will co-invest around EUR 23 million alongside the fund, which means that it will hold around 20 per cent of the shares in the company. congatec's management team will also acquire a stake in the business.
Baker McKenzie advised DBAG on the investment in congatec. Baker McKenzie regularly assists DBAG funds advised by DBAG in transactions, most recently on its investments in Kraft & Bauer Holding and duagon AG.
"Once more, we were able to support DBAG with a well-rehearsed team in the acquisition of a fast-growing technology company that will benefit from the ongoing trend towards digitization," comments Dr. Ingo Strauss, M&A Partner at Baker McKenzie.
congatec Holding AG (www.congatec.com), headquartered in Deggendorf, Bavaria, is a fast-growing technology company in the field of embedded computing with a focus on high-performance Computer-on-Modules (CoM) and industrial single-board computers (SBC). congatec concentrates on the hardware design of CoMs, which account for approximately 80 percent of sales. Founded in 2004, the company is the global market leader in the Computer-on-Module segment, with a broad customer base ranging from start-ups to international blue-chip companies. congatec has subsidiaries in the USA, Taiwan, China, Japan and Australia as well as in Great Britain, France and the Czech Republic. 270 employees generated revenues of USD 126 million in 2019.
Deutsche Beteiligungs AG, which is listed on the stock exchange, initiates closed-end private equity funds and invests - predominantly alongside DBAG funds - in well-positioned medium-sized companies with potential. DBAG focuses on those industrial sectors in which German SMEs are strong by international standards. An increasing share of the equity investments is in companies in the new focus sectors of broadband telecommunications, IT services/software and healthcare.
The global Corporate/M&A team of Baker McKenzie advises on more cross-border transactions than any other law firm. Most recently the team advised SAP on the sale of the communication unit SAP Digital Interconnect to Sinch AB, Paragon Partners on the acquisition of Castolin Eutectic, Air Liquide on the sale of the Schülke Group to the Swedish financial investor EQT, METRO AG on the establishment of a strategic partnership with Wumei Technology Group, Bayer AG on the sale of its majority stake in the chemical park operator Currenta, SPIE on the acquisition of OSMO, Toppan Printing Co. Ltd. on the acquisition of the German Interprint Group and Evonik on the sale of its methacrylate business to Advent International.
Legal advisor to DBAG:
Lead: Corporate/M&A: Dr. Ingo Strauss (partner, Dusseldorf), Dr. Heiko Gotsche (partner, Dusseldorf)
Team: Corporate/M&A: Cosima König-Mancini (associate), Celina Anna Zaim (both associates, Dusseldorf), Jana Upschulte (senior associate), Dr. Kai Stefan Danelzik (associate), Juan Garcia Jacobsen (associate, all Dusseldorf)
Commercial: Dr. Johannes Teichmann (partner, Frankfurt), Rebecca Romig, Isabel Weaver (both associate, Frankfurt)
IP: Andreas Jauch (senior associate, Frankfurt)
IT: Dr. Holger Lutz (partner, Frankfurt), Dr. Tobias Born (senior associate, Frankfurt) Regulatory: Dr. Janet Butler (partner, Berlin), Maximilian Voll (associate Berlin)
Employment/Pensions: Dr. Christian Reichel (partner, Frankfurt), Dr. Lena Kern (senior associate, Frankfurt)
Real Estate: Dr. Daniel Bork (senior associate, Dusseldorf)
Foreign Trade Law: Anahita Thoms (partner, Dusseldorf)
Tax: Dr. Christoph Becker (partner, Frankfurt), as well as lawyers from the Baker McKenzie offices in France, Czech Republic, UK, Australia, China, Taiwan, Japan and the USA
Inhouse Legal DBAG: Florian Döring, Matthias Döll