Dear Daniel, once again, congratulations on the transaction with NORD Holding in February 2022. How have the first two years of collaboration gone?
Of course, it took a little getting used to at the beginning. We had to adapt our expectations and I first had to get used to the specific requirements and processes of working with a private equity investor. However, after a year of intensive collaboration, our reporting processes have become well established and have since made a significant contribution to the further professionalization of our company. I can therefore look back extremely positively on the past two years.
I am particularly impressed by the developments in the area of Group reporting together with EWERK. It is extremely professional. The forecasts are perfect, almost always accurate and therefore form a solid basis for the planning process.
How did the idea of founding CONUTI arise?
Marcus Tegetmeyer and I both worked as SAP consultants in the energy industry. However, when our employers were sold to large corporations such as Siemens, the working environment deteriorated significantly. This dissatisfaction gave rise to the idea of founding our own company with the same focus in order to be able to shape things ourselves. However, as a pure SAP consulting company, the competitive environment back then was very different to today. Over the course of time, CONUTI’s focus has changed several times, but one thing has always remained the same: We want to provide energy suppliers with the best possible support in improving their processes in order to get the most out of their IT landscape.
What are the factors that determine CONUTI’s success? What makes CONUTI unique compared to its competitors?
CONUTI is unique because the company was basically built around its employees. The focus on our employees is a clear success factor. That is why we are also very good at attracting talent and integrating them quickly into projects by using perfectly coordinated processes.
CONUTI also embodies agility and dynamism. In a dynamic market environment such as the energy sector – think of the energy transition – this is a decisive advantage. Suppliers’ business models are changing and we have to be prepared for this. Many of our market competitors have not really understood this yet.
Until 2016, we were a pure SAP consulting company with 20 employees. However, the decision to focus on powercloud from 2017 was absolutely right, as powercloud experts were desperately sought after but were hardly available on the market. This played into our hands and we were able to attract major customers such as EnBW and E.ON. Due to the increasing demand, we were also able to further expand the team.
In addition, we have always been strong in the area of market communication. We want to further expand our market-leading position here. In 2022, we started building the MACO APP, which promises great potential for the future. The BPO (Business Process Outsourcing) segment was established in 2023. This is highly sought after by the market and has become an important pillar of our business. The recent acquisition of powerdata GmbH also opens up new opportunities for us, particularly with regard to internationalization. Basically, we are developing more and more into a software provider.
What were the reasons for initiating an M&A process?
There have been several factors that have led us to this decision. The stronger focus on powercloud since 2017 enabled us to acquire relevant customers and grow steadily with them. The excess demand on the market for corresponding consulting services was so strong that we had to expand the team significantly in a short period of time.
In addition, Marcus increasingly felt the desire to withdraw from the operational business. To facilitate this process and simultaneously make us fit for the future, we decided that CONUTI needed a strong partner to take advantage of growth opportunities and avoid mistakes in the rapid expansion of the organization. The decision to initiate an M&A process was consequently made.
Why did you choose ox8 Corporate Finance as your M&A / Corporate Finance advisor? How do you assess the partnership?
ox8 Corporate Finance was recommended to us by our network. The decision to work with the ox8 team was based on several factors. A key factor was, of course, that the team had already advised powercloud on the acquisition by General Atlantic and could therefore offer unique industry expertise and insider knowledge of the powercloud platform. In addition, the ox8 team consists of sensational people. The collaboration was extremely pleasant, as the interpersonal component was an immediate fit, which also created an absolute relationship of trust.
The execution of the process was absolutely Champions League level. The professionalism in the preparation of the documents was outstanding. In addition to the technical aspects, I was particularly impressed by their understanding of design. When I reviewed the information memorandum, I would have gladly invested in CONUTI again. In the course of the process, ox8 provided clear guidelines, which also minimized our workload.
In addition to the process managment, the negotiation skills were also unique. I could not have imagined a better partner for the M&A process and would be happy to work with the ox8 team again on a transaction at any time. I am already looking forward to the next exit with the ox8 team.
Why did you choose NORD Holding as your investor and partner?
We chose NORD Holding as an investor and partner because they offered us a great package. By merging CONUTI and EWERK, we were able to create a joint group with a clear focus on software and consulting solutions for critical infrastructures.
The NORD Holding team is very professional and actively supports us in the further scaling and professionalization of our business. Both professionally and personally, the team has proven to be a great partner with whom we are ideally positioned for the future development of the Group.
The partnership has not only provided us with financial stability, but also helps us to realize future value creation potential. The NH team not only successfully managed the acquisition of powerdata GmbH, but also made a significant contribution to CONUTI’s strategic direction and success story.
What are CONUTI’s future plans and long-term goals?
Our primary goal is to develop CONUTI into the leading provider of market communication not only in Germany, but also internationally. The acquisition of powerdata opens up new potential and opportunities for increased internationalization.
We also want to be the gateway for billing systems in the energy industry. We are continuing to develop into a software player with high recurring revenues. At the same time, we are continuously developing CONUTI and making the organization fit for the future.
My personal desire is to actively participate in another phase of this exciting development process and to be able to contribute to the long-term realization of our vision.
