Hg invests in F24
European software investor Hg is to acquire a stake 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 holding 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, says: “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.