Overview

Patrimonium Private Equity (lead) together with COI Partners acquire a majority stake in the rapidly growing software testing company TestSolutions GmbH, based in Frankfurt am Main. This represents a further platform investment in the IT and software sector for buy & build strategies-focused Patrimonium Private Equity Fund.

This transaction highlights Flow Partners' stellar track record in the IT services and software space, having previously supported e.g. Element Materials (TIC), Sentryc (brand protection software), Panorays (third-party security management) or Ziik (social intranet software platform).

Transaction Background

With a share of 20-30% of the total costs of a new development, software testing is an important part of the overall software & IT development market, which is driven by the global digitalization trend. New security and data protection requirements are giving this market additional impetus.

With an international team of over 100 IT experts and a focus on the DACH region, TestSolutions covers the entire spectrum of software & IT testing services. The company has a strong presence in the mobility, aviation and finance sectors and her clients are mostly blue-chip companies.

TestSolutions generates a turnover of over EUR 16 million. In addition to its own training and education academy, the company also owns the offshore unit TestSolutions Rwanda Ltd. based in Kigali.

The investment strategy is geared towards promoting the company’s organic and strategic growth as well as its technological innovation capabilities.

As part of this, TestSolutions is focusing on the targeted acquisition of complementary companies in order to become a leading provider of software testing services in the DACH region.

Continuity Thanks to the Involvement of the Founding Team

The previous owners of TestSolutions, Christian Knoop and Kai Stammnitz, will remain on board as sole managing directors and major shareholders. They will ensure continuity and success in the strategic and operational management of the company. Together with an experienced second management level, TestSolutions will continue to develop dynamically in the rapidly growing sector.

“After frequently being approached by international software testing companies, we decided to consolidate our business in German-speaking countries together with a partner. Patrimonium’s approach and their many years of experience convinced us from the very first meeting – so we are delighted to have a new partner and are looking forward to the exciting projects we have planned,” says Christian Knoop, explaining the active step towards the partnership with Patrimonium.

“I am very familiar with the importance of integrated quality and process control from other investments. That’s why I was immediately enthusiastic about the positioning of TestSolutions. Many companies in German-speaking countries are only at the beginning of implementing their digitalisation strategy and digitalisation always means integrating software. In Kai and Christian, we have found two partners who are eager to realise the further development of TestSolutions,” adds Ulrich Mogwitz, Managing Director at Patrimonium Private Equity.

About TestSolutions

TestSolutions GmbH, based in Frankfurt am Main, is a leading provider of comprehensive software testing services in German-speaking countries. Founded in 2007, the owner-managed company specialises in the provision of comprehensive testing services, primarily for blue chip customers in various industries. The services include test management, test automation, load and performance testing, manual testing, test analysis, test factory services and offshore testing services from India and Rwanda. An internal academy offers industry-specific training and accredited courses.

About Patrimonium

Patrimonium Private Equity Fund SCSp is advised by Patrimonium Private Equity Advisors AG, a subsidiary of Patrimonium Asset Management AG (“Patrimonium”). Patrimonium is a fund management company authorised by the Swiss Financial Market Supervisory Authority (FINMA), which manages private market investments in real estate, private debt, private equity and infrastructure. Patrimonium is characterised by a direct and responsible investment approach and operates primarily in Switzerland, Germany and neighbouring countries. Patrimonium manages assets totalling CHF 4.5 billion (as at 06.2023). With offices in Lausanne, Zurich and Zug, Patrimonium employs over 70 people.

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, Munich, Warsaw, Dubai, Riyadh and Miami.

For more information, please visit www.flowpartners.io

Enquiries

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