Cumulocity Pioneers Carve-Out to Accelerate Growth
Deal News | Jan 20, 2025 | Verso Capital Oy
Cumulocity, a leading name in the Industrial Internet of Things (IIoT) sector, has been successfully carved out from Software AG by its management team, with the financial backing of prominent European investors Avedon, Schroders Capital, and Verso Capital. The new independent entity is poised to leverage its position as a pioneer in the IIoT field, anticipating rapid global expansion. Cumulocity's platform is highly regarded, evident from its top positions in Gartner and Forrester industry rankings. This strategic move represents an evolution from its growth under Software AG to a new phase of agility and customer-focused service, spearheaded by a seasoned management team. Investors believe in Cumulocity's potential to seize opportunities in the burgeoning IIoT market across 23 countries, notably the lucrative U.S. market. The management buy-out is designed to enhance Cumulocity's capabilities in smart, connected solutions across diverse industrial domains, broadening its global footprint while striving to maintain a dynamic and attractive workplace for its employees.
Sectors
- Industrial Internet of Things (IIoT)
- Private Equity
Geography
- Germany – Cumulocity is a German company that has been acquired by its management team from Software AG.
- Europe – The involved PE firms, Avedon, Schroders Capital, and Verso Capital, are European entities facilitating the carve-out.
Industry
- Industrial Internet of Things (IIoT) – The article focuses on Cumulocity, which operates within the IIoT sector, providing platforms and solutions for industrial equipment manufacturers.
- Private Equity – The article involves PE firms like Avedon, Schroders Capital, and Verso Capital, which finance and support the carve-out and growth of Cumulocity.
Financials
- $97.3 billion – Assets under management by Schroders Capital, one of the investors financing the Cumulocity carve-out.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Cumulocity | Target Company | Company | A pioneering company in the IIoT sector, providing device management and application enablement solutions. |
| Software AG | Vendor | Company | The former parent company of Cumulocity, from which it has been carved out. |
| Avedon Capital Partners | Investor | Company | A PE firm that invests in growth-stage businesses, supporting Cumulocity's carve-out and growth. |
| Schroders Capital | Investor | Company | Part of the Schroders Group, focused on private market investments and a co-investor in Cumulocity. |
| Verso Capital | Investor | Company | A Nordic PE company specializing in carve-outs, which has supported the management buyout of Cumulocity. |
| Cumulocity Management Team | Buyer | People | The executive team of Cumulocity, leading the acquisition with backing from investors. |