Hg has agreed to invest in Munich-based F24, a provider for emergency notification and crisis management solutions and for sensitive and critical communications in Europe. Hg will invest in a stake owned by Armira and co-founder Ralf Meister and will become the majority shareholder in the business. No financial terms were disclosed.
Munich and London, 07. July 2020 – Hg, Europe’s leading software investor, today announces that it has entered into an agreement to invest in F24, a pan-European sector leader for emergency notification, crisis & incident management and critical communications, headquartered in Munich, Germany. Hg will invest in a stake currently owned by Armira and co-founder Ralf Meister, and will become the majority shareholder in the business. The Executive Board, Dr. Jörg Rahmer (spokesperson), Christian Götz (co-founder and Executive Board member) and Jochen Schütte (Executive Board member) will remain significantly invested in the business, alongside Hg.
F24 partnered with Armira in 2017 and has since then more than doubled its sales by executing a successful growth strategy including three acquisitions and integrations. This transaction marks the end of the first phase of F24’s buy-and-build strategy and a trusted cooperation between the two organisations. Following the transaction, the co-founder and Chairman of the Supervisory Board, Ralf Meister, will also be leaving the company.
With F24, Hg continues its focus on businesses providing critical SaaS solutions across Europe. Hg’s investment in F24 will be made from the Mercury 2 Fund.
Nick Jordan, Partner at Hg, states: “The effectiveness and speed with which businesses respond to crises can make or break their future success. Quality solutions that can add peace of mind, with a proven track-record, are highly valued by their customers. We recognise F24 as a true champion in this sector, with a global presence and serving clients across multiple industry verticals. We look forward to continuing their success and accelerating international growth.”
Hg’s investment marks the starting point of the second phase of F24’s buy-and-build strategy to accelerate further growth.
Dr. Jörg Rahmer, Member of the Executive Board at F24, states: “This new partnership represents a crucial milestone for F24 in accelerating our growth and is evidence for the achievements of our business and team. We’re very excited to welcome Hg, given the depth of experience they have in our sector and their knowledge base, which we’ll be able to use for the benefit of the business and our customers.”
Christian Götz, co-founder and Executive Board member at F24, responsible for Sales, Marketing & PR, HR and Customer Service, adds: “F24 can look back on a history of more than 20 years. Technological progress has shaped us just as much as the constant desire to offer the best solutions for our customers. Together with Hg, we will further accelerate our growth trajectory and be even closer to our customers worldwide, enabling us to cover their constantly growing requirements.”
F24 has an international customer base of more than 2,500 clients in over 100 countries served by more than 170 employees at 12 locations.
Benedikt Joeris, Director at Hg concludes: “F24 has best-in-class and well-invested SaaS solutions, managed by an impressive management team who have been growing the business since inception. We share their passion for technology and innovation and we look forward to seeing what we can achieve together.”
The terms of the transaction are not disclosed. Hg was advised on the investment by Latham & Watkins, Deloitte, E&Y, McKinsey, PWC, Codex and GCA Altium. The former shareholders were advised by Raymond James as exclusive M&A advisor as well as Gleiss Lutz and Taxess.
F24 is the leading software-as-a-service (SaaS) provider for emergency notification and crisis management (FACT24) and for sensitive and critical communications (eCall) in Europe. With FACT24, the company is able to offer a highly innovative solution and help customers around the world to successfully and efficiently manage incidents, emergencies and critical situations. In addition, the eCall platform offers solutions for high-volume communications of critical to confidential content in the business Environment.
Founded in 2000, F24 AG has its headquarters in Munich, Germany. Along with its subsidiaries, it supports more than 2,500 companies and organisations in more than 100 countries around the globe as part of the daily communication of critical and confidential information or in the event of a crisis. This makes the F24 Group one of the world’s leading SaaS providers for alerting and crisis management as well as critical communications for business customers.
F24 is the first company in the world to be certified by ‘The British Standards Institution’ (BSI) for its integrated information security (ISMS) and business continuity (BCMS) management systems. F24 is the first and only European company listed in the Gartner Report for emergency/mass notification services.
Hg is a leading European investor in software and services, focused on backing businesses that change how we all do business. Deep technology expertise, complemented by vertical application specialisation and dedicated operational support, provides a compelling proposition to management teams looking to scale their businesses.
Hg has an investment team of over 140 professionals, plus a portfolio team of more than 30 operators, providing practical support to help our businesses to realise their growth ambitions.
Based in London, Munich and New York, Hg has a portfolio of over 30 software and technology businesses, comprising over 35,000 employees across the UK, US and Europe. For further details, please visit the Hg website: https://hgcapital.com/.
Armira is an investment holding based in Munich focused on medium-sized “Mittelstand” companies in the German-speaking region. Armira invests in established, profitable companies with sales between EUR 50m and EUR 500m.
With its unique capital base from entrepreneurs and entrepreneurial families, Armira has the flexibility to deploy capital without a fixed term and can thus focus on the long-term development of its portfolio companies.
The Armira group currently generates sales of over EUR 1.5bn employing more than 8,000 people.