Verdane acquires portfolio of five German technology companies from HQ Equita
- Verdane has announced its investment in the HQ Equita portfolio, acquiring ownership in five profitable B2B technology companies.
- The HQ Equita team will continue to operate independently, supporting the five companies on their individual growth tracks, in partnership with Verdane who will join the board of each company.
- This marks Verdane’s 19th investment in the DACH region and follows the opening of Verdane’s second office in Germany earlier this year.
Verdane, the European specialist growth investor, has acquired a portfolio of five profitable technology companies and partnered with HQ Equita, a leading investment firm in Germany.
The HQ Equita Fund V portfolio in the transaction comprises five holdings: Ebertlang, a leading pan-European value-added distributor for cybersecurity and infrastructure software; Muegge, an industrial technology provider of plasma and microwave technologies for end markets including production of sustainable lab-grown diamonds; r2p-Group, a supplier of intelligent technology systems for public transport; indevis, a cybersecurity provider; and The Packaging Group, which develops advanced packaging technology that helps customers switch from plastic to sustainable paper packaging.
The transaction provides liquidity to LPs and continuity for the HQ Equita team, along with tailored value creation plans, strategy roadmaps and follow-on capital for each of the five companies and their respective management teams. To achieve this, Verdane worked closely with the HQ Equita team along with representatives from HQ Direct as shareholder of the GP and the fund’s MLPs. Verdane and HQ Equita will work together to scale these assets and plan to explore future M&A opportunities for continuous international growth beyond the DACH region.
HQ Equita, founded in 1992, is a well-established mid-market private equity investor in Germany, backed by investors including institutions, foundations, trusts and the Quandt family office.
Verdane can invest as a majority or minority owner, either in single companies or portfolios of companies and has one of Europe’s most flexible investment mandates, enabling both direct investments and portfolio transactions. Verdane’s unique approach is reflected by the deal structure and governance model addressing all stakeholders’ individual interests. In this specific case, the portfolio transaction generates optionality for existing LPs whilst offering continuity for the HQ Equita GP team, with a clear focus on unlocking value in the portfolio companies through an optimised ownership structure.
Verdane will support the portfolio companies’ growth journeys and Elevate, Verdane’s team of in-house operational experts, will work closely with management in areas including go-to-market, data, finance and talent. Verdane invests thematically in digitalisation and decarbonisation. Verdane has completed 60 portfolio acquisitions since its inception in 2003. Another recent notable portfolio buy-out acquisition and GP partnership is with UK-based Langholm Capital in 2021.
Verdane has also bolstered activity in the DACH region, with notable investments including Hornetsecurity Group, a leading European cybersecurity software company, and Momox, Europe’s largest re-commerce platform. Following this transaction, Verdane will have 19 portfolio companies in the DACH region.
Emanuel Johnsson, Partner at Verdane, commented: “This is a perfect ‘Verdane portfolio deal’ in the sense that we worked closely with multiple stakeholders: HQ Equita, its long-standing LP base, and the management teams of each individual company in the portfolio. It has been a pleasure working closely with the representatives of HQ Group as well as the HQ Equita team, and we are very excited to support each of these five great companies individually, leveraging the Verdane platform and our extensive expertise scaling tech-enabled European companies.”
Malte Rippel, CEO at HQ Holding, commented: “On behalf of the Harald Quandt family and the HQ Group, we are extremely pleased with the outcome of this transaction as it has resulted in a long-term partner for the HQ Equita team and the fund’s portfolio.”
Hans J. Moock, a Partner at HQ Equita, commented: “We have been working with some of the businesses in our HQ Equita portfolio since 2018 and this is an exciting opportunity to continue our partnership with them alongside Verdane, tapping into Verdane’s global network of experience to continue their growth.”
Florian Wiemken, a Partner at HQ Equita, added, “Our entire team is excited at the prospect of partnering with Verdane whose investment will support our existing strategies, while also providing an attractive long-term perspective. We are very proud to embark on this journey with a high-quality platform like Verdane.”
Fairview Capital Group, Ltd acted as exclusive financial advisor to the transaction. Milbank acted as legal advisor to Verdane. Clifford Chance acted as legal advisor to HQ Equita Fund V.