Internet of Things (IoT): Top 5 Deals in Europe in 2023

November 21, 2023

ARM

On the 13th of September 2023, the company made its debut on the Nasdaq stock exchange, using the ticker symbol ARM and setting the price per share at $51. A total of 95.5 million shares were sold during this initial public offering, resulting in a company valuation of $52.33 billion. The company did not receive any proceeds from this offering; instead, the entire revenue of $4.857 billion (£3.86 billion) was allocated to the selling shareholders. However, the underwriters have the option to purchase an additional 7 million shares if necessary.

Arm Holdings is the proprietor and developer of the ARM architecture, originally known as Acorn RISC Machine. This architecture powers an impressive 99% of the CPU cores found in smartphones worldwide. The company also holds a dominant position in the market for battery-operated devices, including wearables, tablets, and sensors.

Software AG

On the 15th of September 2023, Silver Lake completed a leveraged buyout (LBO) of Software AG through a public-to-private transaction, with a total estimated value of approximately EUR 2.4 billion (£2.06 billion). To finance this acquisition, funding sources included a EUR 640 million term loan, a EUR 362 million term loan, and a EUR 100 million revolving credit facility, all provided by undisclosed lenders. Following the completion of the transaction, Silver Lake now possesses an 85.1% stake in Software AG’s share capital and holds corresponding voting rights. This acquisition is expected to bolster Software AG’s strategic partnership with Silver Lake, leading to improvements in the company’s strategic execution.

Software AG is a prominent global software company based in Germany, specialising in enterprise software solutions for integration, business process management, and big data analytics. Serving a diverse client base of over 10,000 corporations across more than 70 countries, it ranks as Germany’s second-largest software provider and is among the top seven in Europe.

Taoglas

Graham Partners completed a leveraged buyout (LBO) of Taoglas on February 28th 2023, for a total sum of $325 million (£30158 million). To facilitate this transaction, Principal Global Investors, Logan Ridge Finance BDC, and Bain Capital Specialty Finance BDC provided debt financing in various forms, including a unitranche loan, a first-lien senior secured loan amounting to $2.36 million, a first-lien senior secured revolving credit line of $645,000, and mezzanine financing totaling $36.66 million for the company. This acquisition will play a pivotal role in supporting the company’s ambitious expansion plans, which include diversifying its product portfolio, forging strategic partnerships, and expanding its global presence through both organic growth and strategic acquisitions.

Taoglas specialises in offering antennae products for Internet of Things (IoT) and machine-to-machine (M2M) applications, serving various sectors such as mobility, infrastructure, transportation, healthcare, industrial, and smart cities. Their product line encompasses a wide array of embedded and base station antennae designed for M2M applications like telematics, automotive, smart grid, metering, telemetry, home automation, remote monitoring, and medical uses. These products enable clients to efficiently address the challenges of cost-effective digital transformation in the market.

AnyTech365

The Spanish born company AnyTech365 entered into a binding agreement to complete a reverse merger with Zalatoris Acquisition, resulting in the merged organisation’s listing on an undisclosed Stock Exchange on September 8th 2023. This transaction places an estimated valuation of approximately $220 million (£173.86 million) on the company.

AnyTech365 offers IT security and technical support services tailored for both end users and small businesses. Their services encompass comprehensive technical support aimed at assisting users in resolving any challenges they encounter with a wide range of devices, including PCs, laptops, smartphones, wearable technology, smart home devices, and any internet-connected devices. Additionally, the company provides proprietary threat prevention technology, ensuring proactive protection and security for end users’ devices. This proactive approach aims to deliver a seamless and worry-free tech experience for users across various domains.

K-businesscom

Two prominent partners in digital transformation within the ICT sector merged their strengths in the key markets of Germany, Austria, and Switzerland. Austria’s leading ICT solution provider, K-Businesscom AG, with approximately 1,650 employees and annual revenues of around €520 million, joined the CANCOM Group on May 8th 2023. The combined value of the cash and share components in the deal totals approximately €165 million (£145.77 million).

This merger created one of the top IT companies in the DACH region, offering combined expertise in IT and digitisation solutions, services, and IT system operations. The portfolios of both companies complement each other effectively, with K-Businesscom adding capabilities in intelligent networks, data, IoT, digital business engineering, software development, and the KBC Cyber Defense Center to the CANCOM Group’s existing strengths in public cloud, managed services, and security.

Talent Insight

“I anticipate an upsurge in demand for professionals specialising in IoT architecture, data analysts, and IoT compliance officers as IoT continues to proliferate across Europe. These specialists will play a pivotal role in navigating the intricacies of IoT implementation across diverse sectors, including ARM Holdings’ domains like smartphones and battery-operated devices, as well as in companies like Software AG, Taoglas, AnyTech365, and K-Businesscom, where IoT is integral to their operations. The IoT landscape offers ample opportunities for those who can seamlessly integrate IoT innovations with sector-specific expertise to redefine and streamline future business operations.”

– Tyler Huskins, Advanced Technology Executive Search Specialist

Published on 21-11-2023