Deutsche Beteiligungs AG (DBAG) invests in congatec Holding AG (congatec), a manufacturer of embedded computing technologies. congatec currently generates more than two thirds of its sales with customers from Europe, sees its share of sales with customers from the USA and Asia growing rapidly and expects this trend to accelerate. In addition to greater internationalization, the expansion of the product range to include computer modules for new processor types is also expected to drive the company's growth. A key driver for this is the rapidly growing demand for high-performance computing solutions - including industrial and tactile IoT, artificial intelligence and other edge applications that require computing power directly in the device in real time and not in the cloud. In addition, congatecs offers RTS Hypervisor software, a real-time performance virtualization solution that runs on congatec-manufactured computer modules but can also be installed on other products.

Jason Carlson, CEO of congatec, pointed out today that DBAG's investment comes at the right time to tap into the diverse market potential that is even increasing due to Covid-19: "In DBAG, we have found a strong partner for the further development of our company, who is well versed in our customers' key end markets and at the same time brings financing expertise and M&A experience - with DBAG and DBAG Fund VIII, we are well positioned to take advantage of the expanding market opportunities."

"We expect continued strong growth in digitalization," said Dr. Rolf Scheffels, member of the DBAG Management Board, on the occasion of the signing of the agreement. "The pandemic has provided a strong impetus for the 'Internet of Things' and 'Industry 4.0' - this will give a further boost to demand for the necessary computer components." DBAG has been intensively involved with companies in the embedded electronics sector in recent years and has already invested in a comparable business model with its investment in Duagon AG. "This experience has now paid off in the assessment of the investment opportunity," says DBAG board member Dr. Scheffels. In the course of an acquisition, Duagon AG also took over the shares of MEN Mikro Elektronik Nürnberg.

In a management buyout (MBO), DBAG Fund VIII, advised by DBAG, will acquire the majority of the shares from the founding shareholders. The parties have agreed not to disclose the purchase price. The closing of the purchase agreement is subject to the approval of the antitrust authorities and is scheduled for the fourth quarter of 2020.