Pitch Best Small Cap Deal 2021: CTAC – Oliver IT
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| Name of the deal | CTAC NV acquires majority share in Oliver IT BV |
| Date | 14 January 2021 |
| Published value | € 5 – 50 million |
| Buyer(s) | CTAC NV |
| Target | Oliver IT BV |
| Seller | Mr. Moerland and Mr. Merks |
Involved firms and advisors
Involved firms and advisors buy side:
ABN AMRO (M&A Advisory), Holla Advocaten (Legal Advisory Corporate M&A)
Involved firms and advisors target:
AKD (Legal Advisory Corporate / M&A), Taylor Wessing (Legal Advisory Corporate M&A)
Involved firms and advisors sell side:
AKD (Legal Advisory Corporate / M&A), Taylor Wessing (Legal Advisory Corporate M&A)
Pitch
Brief description deal / Deal outline
Business and cloud integrator CTAC NV has acquired 51% of shares in Oliver IT BV, a specialist in integration and software development founded in 2009.
Why should this deal win the Award for Best Deal 2021?
This deal embodies the strong combination of execution on an updated strategy by a listed company, on the back of a target that CTAC has been familiar with for many years already. Although intention to acquire had been announced before COVID-19, CTAC has been able to stay close to the selling managing shareholders throughout the COVID-19 hardships until closing successfully. Following its strategy update in 2020 including non-organic growth, CTAC NV has rapidly shown to be able to execute on this by acquiring Purple Square initially and subsequently Oliver IT, which buy and build has progressed even further today and is widely recognised by (capital) markets. Crucial in this acquisition is that, again, CTAC has been familiar with target and key personnel for many years already, which explains a thorough understanding of the target and post-acquisition loyalty of the target organisation, rather than being impacted by assets on legs.
Deal rationale:
By acquiring 51% shares, Oliver IT adds to the CTAC family and growth strategy: relevant and adjacent new business segments, clients, board access and valuable people have been added, which allow for cross- and deep-sell beyond sum of the parts, while maintaining an independent specialist position for Oliver IT in the market at arm’s length from CTAC. Deal structuring with target management ensures positive and well-balanced drive to continue value creation going forward.
What is the impact of this deal for the company?
Oliver IT means another very valuable market proposition within the wider portfolio of CTAC, including both revenue and cost synergy potential, as well as cultural positives to the CTAC community.
What is the impact of this deal for the direct stakeholders?
Ctac shows profitable acquisitive growth within a clear strategy, well recognised by debt- and capital markets. Selling shareholders continue to perform as management to Oliver IT, profiting from the larger CTAC world of opportunities. CTAC as an organisation benefit from its growing internal network, allowing for new ambitions.
What is the impact of this deal on society?
CTAC has shown to be able to consolidate in a fragmented market, while maintaining independent companies such an Oliver IT at arm’s length and still tap from synergy potential. This builds on a network company appealing to employees, clients and consequently investors.
What was most complex about this deal?
As the intention to acquire Oliver IT had been announced just before COVID-19 impacted society, the process had to be on hold until visibility on COVID-19 had improved, while staying close to all stakeholders including selling shareholders, cq. target’s management.
