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Partners Group has acquired Forterro, a prominent pan-European software services provider, for €1 billion. This acquisition underscores the growing importance of ERP solutions in the industrial mid-market. With over 1,200 employees and a portfolio of 11 software brands, Forterro is poised for significant growth under Partners Group's strategic guidance.
Founded over 40 years ago, Forterro specializes in providing software solutions tailored for industrial businesses. Their core offerings include specialized software products, professional services, support, managed services, and education services. Forterro stands out in the market due to its deep expertise in the industrial sector, long-established experience, and a strong reputation, being trusted by over 13,000 organizations. Their comprehensive support services and continuous innovation further differentiate them from competitors.
Partners Group is a leading global private markets investment management firm, known for its significant influence in the industry. The company specializes in private equity, infrastructure, real estate, private credit, and royalties. It offers tailored investment solutions to institutional investors and private wealth clients. Since its founding in 1996, Partners Group has invested over USD 234 billion, establishing itself as a major player with a commitment to high standards of corporate governance and innovative business transformation.
Partners Group acquired Forterro on March 1, 2022. This acquisition aligns with the ongoing trend of digital transformation in the industrial sector. Forterro's strong financial performance and growth potential made it an attractive target. The timing is strategic, capitalizing on the increasing demand for ERP solutions among midmarket manufacturing companies, which are seeking to enhance operational efficiency and competitiveness through advanced software solutions.
The acquisition of Forterro by Partners Group is set to bring significant changes to the company's operations and management. Partners Group plans to work closely with Forterro's existing management to expand its platform across Europe, focusing on organic growth and strategic acquisitions. This collaboration aims to enhance operational efficiency and integrate advanced technologies into Forterro's ERP solutions. The strategic vision, dubbed "Forterro 3.0," will transform the company into a unified, subscription-based, and cloud-ready ERP platform, broadening its capabilities and market reach.
Forterro's product offerings and services are expected to see substantial improvements under the new ownership. The focus will be on expanding go-to-market initiatives and incorporating cloud solutions where appropriate. This transformation is anticipated to positively impact Forterro's strong financial performance, with recurring revenue nearing €200 million and an EBITDA of approximately €60 million. While specific employee and customer reactions are not detailed, the emphasis on growth and improved services suggests a positive outlook. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.
