Sesa Fortifies Engineering Software Capability with 60% Stake in Innofour
Deal News | Mar 07, 2025 | Finance Community IT - 1 Corporate M&A
Sesa, a leader in the digital technology sector, has acquired a 60% stake in Innofour through its wholly-owned subsidiary Var Group. This strategic acquisition aims to bolster Sesa's capabilities and offerings in the European engineering software market, furthering its internationalization strategy to support enterprise digitalization. Innofour, founded in 2008 and headquartered in Almelo, Netherlands, specializes in electronic design automation (EDA), computer-aided engineering (CAE), and application lifecycle management (ALM) services. It operates in several key European markets, serving about 250 enterprise engineering clients. The acquisition is expected to expand Var Group’s presence in the Benelux and Scandinavian regions. Innofour’s founding partners will remain engaged in the business with an equity commitment, aiming for sustainable growth and integration with Var Industries, a division of Var Group. The acquisition aligns with Sesa’s growth strategy through industrial bolt-on acquisitions aiming for sustainable and long-term value creation for stakeholders. The transaction was guided by Sesa's internal legal and M&A teams, valuing Innofour at five times its average EBITDA, with projected revenues around €6 million for 2024.
Sectors
- Digital Technology
- Engineering Software
- Industrial Manufacturing
Geography
- Netherlands – Innofour is headquartered in Almelo, Netherlands, making it a key geography for this acquisition.
- Italy – Sesa, the acquiring company, is based in Italy, which is central to the transaction.
- Sweden, Norway – Countries where Innofour has operational activities, marking their relevance in the geographical expansion of Sesa.
- Benelux and Scandinavia – The regions where Var Group aims to extend its presence through this acquisition.
Industry
- Digital Technology – The article discusses the acquisition of Innofour, a company specialized in digital solutions, which will enhance Sesa's portfolio in digital technology solutions, particularly in engineering.
- Engineering Software – Innofour's specialization in electronic design automation and computer-aided engineering emphasizes the focus on the engineering software industry.
- Industrial Manufacturing – The acquisition aligns with the digital transformation needs of manufacturing enterprises, which are primary clients of Sesa and Innofour.
Financials
- 60% – The percentage of Innofour acquired by Sesa through Var Group.
- €6 million – Projected revenues of Innofour for the 2024 fiscal year.
- 5 times EBITDA – The valuation multiple applied to the acquisition of Innofour by Sesa.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Sesa | Acquiring Company | Company | Sesa is a digital technology company involved in the acquisition to enhance its engineering software capabilities in Europe. |
| Var Group | M&A Executing Entity | Company | A wholly-owned subsidiary of Sesa, responsible for acquiring Innofour. |
| Innofour | Target Company | Company | A company that provides software solutions for electronic design, serving engineering enterprises, which is being acquired by Sesa. |
| Francesca Moriani | CEO | Person | CEO of Var Group, a key figure in the expansion and integration strategy. |
| Filippo D'Agata | Head of Var Industries | Person | Involved in the strategic expansion through this acquisition. |
| Peter Bakker, Jaap Schuurman, Rick Stroot, Bas Hassink | Founders and Managing Partners | People | Founders of Innofour who will remain engaged in the business post-acquisition. |
| Alessandro Fabbroni | CEO | Person | CEO of Sesa, overseeing the strategic acquisition and integration. |