Proact IT Group
Proact - Acquires ahd in Germany for EUR 26.2m (ABG Sundal Collier)

2021-10-26 09:44
Adds 8% to 2022e sales and 12% to EBITA
Acquisition multiple 9.0x EV/EBITA vs Proact ‘22e 9.4x
Improves services mix and raises margin, positive
Expands presence in Germany
Today Proact has signed an agreement to acquire German IT company ahd GmbH & Co. KG (ahd), a specialist in managed services, offering cloud solutions, consulting and on-premises services for its customers. ahd will be the fourth acquisition over a two-year period wherein Proact acquired PeopleWare in the Netherlands, Cetus Solutions in the UK and Conoa in Sweden. ahd is headquartered in Düsseldorf with 120 employees, meaning that there is little cost overlap to Proact which is located in southern Germany, but we estimate potential synergies to come from cross selling being a larger provider. ahd has a strong offering in managed services and has made the transition from system sales to service sales to a larger extent than Proact. Enterprise value for the acquisition is EUR 26.2m.

Acquisition multiple of 9.0x in line with Proact’s multiples
At an acquisition multiple of 9.0x EV/EBITA, ahd adds 8% to Proact’s 2022e sales (EUR 30m in sales for ahd) and 12% to EBITA (EUR 2.9m in EBITA for ahd). The EBITA margin for ahd is 9.7%, meaning that it will raise Proact’s 2022e EBITA margin from 6.3% to 6.5% all else equal. We estimate the sales mix to be 30% system and 70% service (of which 60% cloud), and that ahd has been able to grow +5% organically in the last years (vs Proact ~0%).

Improves mix and increases margin – positive
We find it positive that Proact lands another acquisition, which improves services share of sales on an all else equal basis from 41% 2022e to 43%. It also raises the group margin, taking a small step towards the 8% EBITA target. The only caveat in this deal is that Proact itself trades at 9.4x 2022e EV/EBITA, which generates no multiple arbitrage, but still adds a good asset at an attractive price in our view.


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  • Läsaren av innehållet kan anta att ABG Sundal Collier har erhållit eller kommer att erhålla betalning för utförandet av finansiella företagstjänster från bolaget. Ersättningen är på förhand avtalad och är inte beroende av innehållet.

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