Barings Provides Financing for Forterro’s Acquisition of abas Software AG
Sep 24, 2019
Barings, one of the world’s leading financial services firms, today announced that it has served as mandated lead arranger and lead agent on an additional senior secured credit facility to support Forterro’s acquisition of abas Software AG (“abas”), a Germany-based enterprise resource planning (“ERP”) software vendor for manufacturing companies worldwide. Forterro, a group of European specialized ERP software companies, is backed by Battery, a global, technology-focused investment firm. Financing terms were not disclosed.
Headquartered in Germany, abas provides comprehensive and configurable ERP software and smart business process consulting to 4,000+ mid-market companies across 30 countries. The business was founded in 1980 and its product ranks among the top five ERP systems for mid-market manufacturing businesses in its core geographies. The acquisition of abas represents the eighth European ERP software platform add-on for Forterro, with each portfolio company providing highly-integrated software solutions to a different set of SMEs across various sectors and regions.
“The abas acquisition marks an important step for Forterro: entry into the German market through a strong incumbent,” said Morad Elhafed, General Partner at Battery. “Forterro has continued to expand its business both organically and through such acquisitions since Battery’s initial investment, and we are looking forward to the next stage of growth with abas’s product and reputation. We have been delighted to work with the Barings Global Private Finance team once again, and in particular have valued their cross-border structuring expertise and seamless execution to facilitate this transaction.”
“Barings is very pleased to support Forterro’s latest strategic acquisition in Germany. The group’s local brands have consistently demonstrated strong growth through their distinct and leading positions within niche markets,” said L. Max McEwen, Managing Director for Barings Global Private Finance. “We appreciate Battery’s continued trust in Barings to support Forterro’s growth strategy and to build the leading ERP software platform in Europe.”
Barings Global Private Finance, part of Barings LLC, is a 70+ investment team located in seven offices on four continents. GPF has a 40-year track record of successfully financing middle-market buyouts, acquisitions, and recapitalizations. With product capabilities that range from traditional senior debt to bespoke junior capital securities, and hold sizes of $250 million+, Barings is focused on providing capital solutions that help our private equity clients complete their deal on time and as expected. Our long-term commitment to the asset class, local origination in each region, consistent team, and broad range of investment capabilities, are designed to provide investors an absolute spread premium to broadly syndicated loans as well as an attractive risk-adjusted return potential.
Barings is a $325+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients and customers. Through active asset management and direct origination, we provide innovative solutions and access to differentiated opportunities across public and private capital markets. A subsidiary of MassMutual, Barings maintains a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific. Learn more at www.Barings.com.
*As of June 30, 2019
Battery strives to invest in cutting-edge, category-defining businesses in markets including software and services, web infrastructure, consumer internet, mobile and industrial technologies. Founded in 1983, the firm backs companies at stages ranging from seed to private equity and invests globally from offices in Boston, the San Francisco Bay Area, London, Israel and New York. Follow the firm on Twitter (@BatteryVentures) and at www.battery.com, and find a full list of Battery investments here.
Forterro is a group of European companies that deliver ERP software to SMEs in specialized geographical or vertical markets. Backed by global investment firm Battery Ventures, Forterro operates business units in Sweden, Switzerland, France, Poland and Germany, as well as regional office locations and research and development centers around the world. Through its ever-growing ecosystem of IP and capital, Forterro collaborates with local management teams to strengthen the solution offerings and operational performance of its portfolio companies. For more information, visit www.forterro.com.
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