GCA becomes part of Houlihan Lokey

Transaction

Transaction Details

Closed
May 1, 2018

Sector

Industrials and Industrial Technology

Deal Type

Mergers and Acquisitions

Deal Value

N/D

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GCA Advises HQ Equita on the Sale of MEN to Deutsche Beteiligungs AG

GCA is pleased to announce we acted as exclusive financial advisor to HQ Equita on its sale of MEN, a leading provider of rugged computer boards and systems for harsh environments, to DB for a merger with its portfolio company Duagon, a leading provider of train control and communication solutions.

MEN Mikro Elektronik GmbH (“MEN”) develops and produces highly reliable and durable computing solutions for challenging environmental conditions, including those found in the mission- and safety-critical transportation and industrial markets. Duagon, a portfolio company of Deutsche Beteiligungs AG (“DB”), is a leading provider of network components for data communication in rail vehicles.

Both MEN and Duagon hold leading competitive positions in their respective markets. While MEN’s computers ensure the flawless and reliable control of brakes, doors and other subsystems of rail vehicles and rail networks, Duagon’s components enable the communication of these systems with the central train network. With their complementary expertise, Duagon and MEN will develop new products and comprehensive solutions with a focus on automatic safety systems and technological trends, such as autonomous driving.

Hans Moock, Managing Director of HQ Equita, highlighted the business strategy of the merger: "Due to Duagon’s highly complementary technology and the two well-matched management teams, we believe the merger will create a leading technology provider for secure computing and communications solutions in the rail sector. Such a combined group is ideally positioned to benefit from the positive developments expected in the future in the field of railway electronics and other mission-critical markets, including medical technology, avionics, power and energy and special industrial applications."

Bernd Härtlein, current CEO of MEN and future CEO of the Computing business unit, added: "The merger of Duagon and MEN is a major first step in creating a market leader in rail and market computing, wherever there is a need for highly reliable and secure solutions. In particular, I see great potential in Duagon’s hardware-related software competence and its strong position with Asian customers."

Terms of the transaction were not disclosed.

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