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Advising a Global Testing, Certification and Inspection (TIC) Player results in honest caution in pursuing Resillion's digital testing business.


Hasselt, Belgium — 17 Aug 2022

A dominant player in the testing, inspection and certification sector (GlobalTIC*) needed to assess the strategic rationale behind acquiring Resillion (fka Eurofins Digital Testing) which was being carved out via a formal sell-side process in a short time frame. The business units were being positioned as leading in the IoT space, and the corporate development team needed rapid expert guidance before deciding whether to progress to Phase 2 of the transaction.


Advising a Global Testing, Certification and Inspection (TIC) Player results in honest caution in pursuing Resillion's digital testing business.


Hasselt, Belgium — 17 Aug 2022

A dominant player in the testing, inspection and certification sector (GlobalTIC*) needed to assess the strategic rationale behind acquiring Resillion (fka Eurofins Digital Testing) which was being carved out via a formal sell-side process in a short time frame. The business units were being positioned as leading in the IoT space, and the corporate development team needed rapid expert guidance before deciding whether to progress to Phase 2 of the transaction.


Overview

GlobalTIC had been recently introduced to carve-out process of Resillion's digital testing unit and with just two weeks until the indicative bid deadline, decided that some external expert due diligence made sense before investing any further time and effort on the transaction.

While the overall strategic rationale of expanding to digital testing was clear, GlobalTIC wanted to make sure this was the right asset for them or whether alternative targets would perhaps have a better strategic fit. They also required a preliminary view on whether Resillion had defendable proprietary technology in software testing and cybersecurity rather than being purely a people expertise driven business.

* a fictious name for our client which has conducted this project on a confidential basis



Our Approach

We delivered buy-side advice covering:

  1. Background of embedded software and the IoT value chain
  2. Assessment of each of Resillion's Digital Testing business units
  3. Detailed benchmarking for each of the vertical vs. close peers
  4. Background of embedded software and the IoT value chain
  5. Preliminary recommendation of areas for further due diligence


Results

Resillion has clear long-term potential as digital testing continues to be more relevant as the market for embedded software booms and each of the business units had highly synergistic potential on their newly set growth path.

We did however have many questions on whether this was the right fit for GlobalTIC given their current areas of specialism and provided our honest caution as the IoT story is still very much in its early days. Upon reflection the corporate development team decided to pass on the acquisition opportunity, preferring to pursue alternative targets with clearer synergies instead.

In September 2022, it was announced that Eurofins successfully divested their digital testing arm to private equity buyer Stirling Square Capital Partners for €220 million on a cash and debt free basis.



About Resillion

From the expertise of Eurofins Scientific’s Digital Testing, Cyber Security, Digital Forensics and Content divisions, Resillion brings together over 700 experts with a passion for delivering the best in testing technologies

Resillion is a global company with end-to-end capabilities: no matter industry, your location, or stage. With offices in North America, Europe, and Asia, Resillion helps organisations realise ambitions in cyber security, testing of digital media content and quality assurance.



About Flow Partners

Flow Partners is a modern advisory firm providing independent corporate finance advice to companies and investors that shape the global digital ecosystem. Flow was founded in 2020 and operates globally with presence in London, Berlin, Warsaw and Miami.

For more information, please visit www.flowpartners.io



Enquiries

For all enquiries please contact the team at [email protected]






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