Valid enters into an agreement to acquire Fundamenture A/S
Frankfurt, 02 September 2015. Valid Group, a listed company based in Brazil, has signed an agreement to acquire 100% of Fundamenture A/S, a Danish technology company with focus on growth in businesses related to Smart Card technologies with global potential.
Through its subsidiaries, Fundamenture operates in the global telecom market, with relevant footprint in Asia, Africa and the Middle East, serving over 150 customers.
Further, Fundamenture has been developing technologies for the banking smart cards (EMV), aiming at becoming an important player in this segment that has been growing fast in the markets where it operates.
The initial purchase price for Fundamenture amounts to USD 90 million. In addition, the parties agreed on a significant earn-out which is based on Fundamentures performance between 2015 and 2017.
As a result of this acquisition, Valid will now play a more relevant role in the chip global value chain with gains of scale, greater efficiency and market share by conquering new customers within a global context where the SIM card market is still growing. With this acquisition, Valid reinforces its growth strategy in the markets where its presence is not relevant yet, strengthening its global footprint as one of the world’s major SIM card providers. Fundamenture holds 6.5% of the global SIM card market, with 300 million cards sold annually. This acquisition will allow Valid to jump from the 13th to the 5th position in the SIM card suppliers’ global ranking.
“Fundamenture’s acquisition not only complements our essential skills through our products and service platforms, but also enables us to speeding up our growth by entering into the growing demand markets where we still do not have a relevant footprint. Moreover, this acquisition is also strategic for us as it enables us gains of scale and operating synergy with the Company’s current operations.”
– Carlos Affonso, Valid’s Global CEO
“We are much honored to become an important part of the successful Valid Group, with whom we have learned to know and share values of ethical behavior, high quality of work, and valuing of all employees, providing our clients with the best possible service.”
– Sven Janssen, Fundamenture’s CEO
Birger Nahs, Executive Director at ACXIT Capital Partners advised the shareholders of Fundamenture throughout the deal.
“We have known Birger for many years and thank him for his outstanding work in terms of M&A dealmaking and process management.”
– Sven Janssen
The Board of Directors of Valid has approved the acquisition which is still pending as is requires – among others – the approval at Valid’s Extraordinary Shareholders’ Meeting to be held on September 30, 2015.
ACXIT Capital Partners acted as exclusive M&A adviser to the shareholders of Fundamenture in this transaction.
The Fundamenture Group is a technology company with focus on growth in businesses related to Smart Card technologies with global potential. Its subsidiaries, Logos Smart Card, Logos Solvo, Bluefish and Fundamenture Logistics operate in different business segments of the Smart Card Industry. The Group’s activities range from the manufacture and selling of Smart Cards, implementation of operating systems on SIMs to marketing, deployment and logistics management of applications and solutions for mobile network operators and vendors. Established since a decade in the world of wireless telecoms, Fundamenture has grown into a strong and versatile group of companies, operating globally. Since 2012, Fundamenture has been a member of the SIMalliance. (www.fundamenture.com)
Valid is headquartered in Rio de Janeiro, Brazil, and listed on the Brazilian Stock Exchange Bovespa under the symbol VLID3. Valid is mainly present in Latin and North America, serving major financial institutions and government agencies in the Smart Card industry. Valid’s advanced information technology systems, capacity to print high security documents and long-term relationships with clients give it an unparalleled position in the Brazilian market. In 2014, Valid’s net revenues amounted to approx. USD 350 million with an EBITDA of approx. USD 63 million. (www.valid.com.br)
About ACXIT Capital Partners
ACXIT Capital Partners is a leading international corporate finance and investment advisory firm for mid-market clients and entrepreneurs in Europe and beyond. Since 1998, we offer our clients comprehensive corporate finance advisory services including M&A and capital markets advisory as well as restructuring, debt and strategic advisory. As an independent, privately owned firm we maintain offices in Frankfurt, Berlin, Munich, Zurich, Vienna and Hong Kong as well as strong alliances in France, China, India and the USA.
To date, we have completed more than 350 transactions with a total deal/financing volume of approx. EUR 17bn. Our clients are corporations, family-owned businesses, entrepreneurs, financial sponsors and family offices. While our home market is in the German speaking region, most clients are international and transactions cross-border. (www.acxit.com)
ACXIT Capital Holding GmbH
60323 Frankfurt am Main
Dr. Ingmar Ackermann, Managing Partner
Birger Nahs, Executive Director