Innova Capital to acquire 75% stake in Inelo and OCRK
Innova Capital, a leading Central European private equity fund, is to acquire a 75% stake in Inelo and OCRK, a leading technology-based player active in drivers' work time management systems for the transportation industry. As a result of this transaction, the fund will also gain exposure to the attractive telematics space.
On 20 October 2017, Innova Capital signed an agreement to purchase 75% of shares in Inelo Sp. z o. o. and OCRK Sp. z o. o. S.k. The founders of Inelo and OCRK, Jakub Gieruszczak and Mirosław Stocerz respectively, will partially roll-over their holdings into minority shareholders. This has been the eleventh “Founder Succession” transaction, in which Innova has supported and partnered with Polish entrepreneurs.
“In line with our investment strategy, we are searching for companies with a strong market position which will allow us to capture premium returns. Inelo and OCRK are European leaders, with unique know-how in the area of analysis and drivers’ work time management. They also hold an attractive position in the fast growing telematics market. We are proud to become a shareholder in a Group with such potential!” – said Magdalena Magnuszewska, Partner at Innova Capital, who is leading the investment. “We strongly believe that based on its solid foundations, know-how, and technology, the Group will continue its dynamic growth, both domestically and in the global market” – said Magdalena Magnuszewska.
Inelo and OCRK provide comprehensive solutions for the transportation industry, mainly in the area of work time management and telematics. The Group’s strong market position is reflected in the fast growth of the business (~30% historical revenues CAGR). It benefits to a large extent from subscription-based revenues – while, thanks to its state-of-the-art technology, the business is highly scalable. At present, the software developed by Inelo is used by control authorities across 13 EU countries. The Group has also built a particularly strong position in the area of WTM and telematics for small and medium-sized fleets.
“Over 15 years on the market, we have become a leader in the drivers’ work time management area, both for transport companies and control authorities across Europe. We hope that thanks to the involvement of this new investor we will be able to accelerate growth and gain new business partners across multiple international markets” – said Jakub Gieruszczak.
In 2016, the total revenues of the Group totalled PLN 58 million, with over 10,000 clients and 3,500 employees of the control authorities using its software. Both companies’ representatives advise the European Commission and conduct training sessions for transportation inspection authorities, police forces, and other control authorities. The Group employs over 450 employees.
Transaction advisors included: on the Seller side – PwC (M&A Lead Advisor), and GESSEL; from the Buyer side- PwC (Tax & Financial Due Diligence), BCG, and Weil.
Ogólnopolskie Centrum Rozliczania Kierowców is a leading player handling drivers’ work time management, operating on the Polish market since 2002. It employs over 260 experts and specialists in labour and transportation law of Poland and the EU, with a vast experience in the transportation & logistic industries. OCRK, constantly monitors the legal and economic situation across the transportation industry in Europe, in order to provide the highest quality and most comprehensive services.
Inelo offers top quality software for analysis and management of drivers’ work time and is a developer of telematics solutions offered to the transportation industry. It also renders training and advisory services for the companies operating in the transportation industry. The company employs over 190 people in four areas of its operations: Sales, development/IT, Services and Administration.