Frankfurt am Main  |  Thursday 14 November 2024

roda Computer GmbH has been acquired by MilDef Group AB

Steen Associates acted as exclusive financial adviser to the shareholders of roda Computer GmbH, Germany on its sale to MilDef Group AB, Sweden.

Headquartered in Lichtenau (Germany), roda Computer GmbH (“roda”) is a well-established provider of military IT solutions with a strong market presence in Western and Central Europe, primarily in the DACH region. The company is specialised in the sale of mobile and rugged computers with customers mainly active in the defence sector and include government agencies such as national defence authorities and procurement organisations as well as companies in the defence industry. roda was founded in 1987 and has approximately 115 employees and two production facilities. In addition to the sites in Germany, roda is also present in France and the United Kingdom.

MilDef Group AB (“MilDef”), headquartered in Helsingborg, Sweden, is a system integrator and full-service provider, specialising in rugged IT for military, government and critical infrastructure. The company is listed on the Stockholm Stock Exchange (ISIN: SE0016074249).

The acquisition will significantly strengthen MilDef's presence in the attractive and growing Western & Central European markets and enable cross-selling of MilDef's products through roda's market channels. Further, MilDef unlocks access to significant framework agreements with countries that have announced substantial increases in defence budgets and enhanced defence capabilities. Through the acquisition, MilDef becomes one of Europe’s leading players in tactical and rugged IT for the defence domain.

“We are very pleased to welcome roda to MilDef. The acquisition of roda accelerates MilDef's expansion in the strategically important defence market in Europe. roda's long-standing customer relationships, existing framework agreements, and strong reputation in the Central European market create a great opportunity for cross-selling of MilDef's existing offerings. The acquisition strengthens MilDef's role as a significant player in the European effort to enhance defence and security capabilities. We look forward to taking the next step in MilDef's growth journey once the transaction is completed”, says Daniel Ljunggren, President & CEO of MilDef.

“The main criteria when finding a new owner of roda was to find a partner that truly wanted to continue the successful growth journey of our company. For the management of roda this was extremely important, and we are convinced that MilDef is the perfect fit for continued development. Now two of Europe’s leading defence technology companies will join forces to present a very attractive and trustworthy offering”, says Martin Bertsch, CEO and Founder roda.

Key financial aspects of the transaction

• The acquisition is facilitated through an initial consideration of EUR 70 million in cash, and 1,374,047 newly issued shares in MilDef (the “Issue in Kind”) on a cash and debt free basis (Enterprise Value). The initial consideration could increase through a potential earn-out of up to EUR 4 million dependent on agreed financial performance targets for 2024.
• The initial consideration of the acquisition implies an EV/EBITDA multiple of approximately 8x based on the EBITDA for the FY2023 for roda GmbH, the Group’s main entity.

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