goetzpartners advised Headway Capital Partners LLP on its investment in Toradex AG with a Commercial Due Diligence
Since the acquisition of Toradex AG (“Toradex”/ “The Company“) in 2016 by Verium AG (“Verium”), the Company has performed strongly, with an exceptional management team driving the growth strategy that is distinguishing the Company through a highly resilient, stable, and diversified end-to-end service delivery and business model. Toradex’s optimized value chain coverage and focused high-quality/-performance modular product portfolio are enabled through its lean and asset-light business model. Together with Headway Capital Partners LLP (“Headway Capital Partners”), Verium continues to invest and believes in the future of the Company. This is primarily based on Toradex’s organic strategy of delivering industrial-grade hardware platforms as well as its SaaS offering Torizon which can be accelerated thanks to the additional capital of the fund.
The Commercial Due Diligence comprises a comprehensive review of Toradex’s business model, its unique selling proposition (e.g., the integration of its products in mission critical end applications with highest requirements regarding quality, reliability, and longevity as well as its leading in-house capabilities in hardware design and software development/ engineering at short delivery times), and financial performance, which included a thorough price-volume analysis underlining the Company’s continuous strategic shift to next-generation products and services. In addition, technological platforms and architectures were assessed as well as trends and drivers of the addressed global market and their implications on Toradex. Furthermore, global competitiveness was analysed on multiple levels considering the specifics of the Company’s service-oriented business leading to a very sticky customer base.
This project complements goetzpartners’ outstanding track record in providing strategic and commercial advisory services in the space of high-tech industrial applications and makes goetzpartners the commercial advisor of choice in embedded computing.
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About Toradex
Toradex is a leading provider of embedded hardware and software for industrial applications. These products are serving diverse application areas such as Medical & Diagnostics, Testing & Measurement and others, benefitting from the ever-increasing number of connected devices and related cybersecurity threats. Toradex’s products are deeply integrated into its customers’ end products resulting in very long product lifecycles and substantial customer lock-in.
Transaction Team
- Dr. Gerrit Schütte, Managing Director
- David Oesterschlink, Manager
- Gabriel Berenstein, Consultant
- Nicolas Böckenhüser, Consultant
- Linh Dong, Consultant
- Maximilian Knirsch, Consultant
