Thoma Bravo Makes First German Acquisition with €400m EQS Deal

Thoma Bravo agreed to buy corporate communications and compliance services firm EQS Group AG for about €400m ($434m), marking its first takeover of a listed German company. EQS shares soared.

The tech-focused buyout firm will offer €40 a share, representing a 52.7% premium to EQS’s Wednesday closing price, according to a statement Thursday. Bloomberg News reported Wednesday that the two were in talks and near a deal.

Thoma Bravo has received commitments from EQS investors representing more than 60% of its share capital to support a deal. The firm also will subscribe to a 10% capital increase by EQS at the takeover price upon completion of the offer.

EQS shares jumped 52% to €39.90 at 9:18 a.m. in Frankfurt. Before Thursday, shares in Munich-based EQS had risen about 17% this week, giving the company a market value of about €263 million.

Thoma Bravo beat out several rival private equity firms in a sale process that EQS started this summer, according to people familiar with the matter. Because EQS is listed on Frankfurt’s Scale market for midsized companies, the private equity firm will have more flexibility in delisting the company than if it were traded on the Prime Standard segment.

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Founded in 2000, EQS works with companies on from everything from whistleblower protection and compliance processes to reporting financial results and investor relations, according to its website. The company has offices in Europe, the US and Asia and employs roughly 600 people.

The deal marks the latest private equity takeover of a listed German company this year. Medical diagnostics provider Synlab AG, open-source software company SUSE SA and space technology group OHB SE are among those to have agreed to be taken private in 2023.

Source: BNN Bloomberg

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