DBAG invests in congatec to accelerate edge computing

In addition to stronger internationalisation, the expansion of the product range to include computer modules for new processor types should also drive the company's growth. A key driver for this is the rapidly growing demand for high-performance computing solutions – including industrial and tactile IoT, artificial intelligence and further edge applications that require computing power directly inside the device in real time and not in the cloud.

In addition, congatec's innovative RTS Hypervisor software sets new standards in terms of real-time performance and virtualisation - both as a stand-alone software solution and in conjunction with computer modules produced by congatec.

Jason Carlson, Chairman of congatec's Management Board, pointed out that the investment of DBAG comes at the right time to unlock diverse market potentials which are increasing as a result of Covid-19: "In DBAG, we have found a strong partner for the further development of our company who is well versed in our customers' key end markets and brings financing and M&A experience - with DBAG and DBAG Fund VIII, we are well positioned to take advantage of these expanding market opportunities."

"We expect continued strong growth in digitisation," added Dr Rolf Scheffels, member of the DBAG Management Board, on the occasion of the signing of the contract. The pandemic has given a strong boost to the Internet of Things and Industry 4.0 – this will give a further boost to demand for the necessary computer components. In recent years DBAG has been intensively involved with companies in the embedded electronics sector and has already invested in a comparable business model with its investment in Duagon AG.

DBAG Management Board member Dr Scheffels, said: "This experience has now paid off in the assessment of the investment opportunity.”

In a management buyout (MBO), DBAG Fund VIII, advised by DBAG, will acquire the majority of the shares from the founding shareholders. The parties have agreed not to disclose the purchase price. The closing of the purchase agreement is subject to the approval of the antitrust authorities and is scheduled for the fourth quarter of 2020.