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Aareal Bank to divest minority share of Aareon
Posted on Thursday, 21 May 2020 13:23
German specialist property bank Aareal has said it intends to sell a stake in property systems and consutancy services provider Aareon and will enter into talks with a select group of long-term investors.

The firm did not specify the exact size of the holding to be jettisoned, other than to say it would be a significant minority share and that the vendor will continue to be a majority investor.

Aareal said it hopes this process will reinforce the target’s growth prospects.

No expected date for completion has been set as yet, but the vendor said it intends to carry the process out quickly.

Criteria for selection of the successful suitor include support for Aareon’s growth strategy, especially with regard to an increase in M&A activity, as well as the prospective buyer’s knowledge of the sector.

Aareon claims to be the leading provider of systems and consulting services for the European property sector.

The firm has a history dating back 60 years and a presence spanning 40 locations throughout seven countries across Europe.

Its customer base numbers around 3,000.

Aareon recorded revenue of EUR 251.90 million in fiscal 2019, up from EUR 236.60 million over the preceding 12 months.

The largest deal targeting a provider of computer systems design services to have been announced worldwide during 2019 was worth USD 1.42 billion, according to Zephyr, the M&A database published by Bureau van Dijk.

That transaction saw Tieto pick up Norway-based EVRY in December and was followed by a USD 1.18 billion investment in CACI International by Phocas Financial.

Zephyr shows those were the sector’s only two deals worth in excess of USD 1.00 billion to have been signed off over the 12 months, while already in 2020 to date, two deals have surpassed the same barrier, despite the year being less than five months old and the market turmoil caused by the global coronavirus pandemic having impacted activity levels.

© Zephus Ltd