The UK-based private equity firm Cinven Ltd. will get the controlling power with the buyout of German software company think-cell. The founders Markus Hannebauer and Arno Schoedl will remain in their position after the transaction as well.
Cinven Ltd an investment deal recently with the leading tax preparation software provider in February called Drake software; the company raised $11.2 Billion in 2019. The company offers assistance in accelerating growth, improves product development with innovation, capitalizes digitization by improving commercial effectiveness, and drives growth strategically and organically. Other deals that Cinven had in recent times are generic drug maker StadaArzneimittel AG and ThyssenKrupp AG’s elevator business.
think-cell is a software company that builds exceptional tools that help users to make charts and slides on Microsoft Corp.’s PowerPoint. There are alternative tools to think-cell such as; Power-user for PowerPoint – templates icons, maps, tools automating formatting tasks and diagrams, plugins like Aploris, and charting solutions such as Mekko Graphics and Vizzlo.
The investment in the company is made anticipating growth as per the industry trends.
The private equity trends in 2021;
- With the pent-up demand, the PE deal activity set record high dry powder and2021 seems to be an active year driving the acquisition. As of November 2020, Asia Pacific PE and Venture Capital (VC) dry powder were over US$476 billion.
- According to BluWave’s Proprietary Insights Report, the first quarter of 2021 Private equity activity showed higher emphasis that led to 70% on value creation initiatives.
- With the divergence in investments, 2021 anticipates a record high in exits as the investors branch out for various channels to monetize.
- Consumers have driven digitization and adoption of innovative technologies focussing on the value for money and getting digitally equipped. Especially Asia Pacific funds saw dominance in Technology in the last year which was more than 30% of the total deal value. The catalytic coronavirus spurred the digital transformation in customer behaviour that showed the change in customer preferences. 2021 is expected to continue the same impact of digital services accelerating fund flows in specific sectors.
- Private debt also offers flexible solutions in the Asia Pacific that addresses the customer’s demand. The Asia private debt funds are significantly growing asset classes that grew twice as much from 2014 with US$28 billion to 2019 with US$64 billion. The business needs are high therefore it is expected to accelerate through 2021.