Transactions

NAVENTIK Sale to U-BLOX

The Company

Naventik GmbH is a non-listed company based in Chemnitz, Germany, specializing in absolute (end-to-end) positioning using proprietary software satellite navigation (GNSS SDR) and sensor fusion technology for ADAS solutions with functional safety. The developed software-based technology approach for high-precision positioning addresses in particular automotive (ADAS) as well as industrial (AGV, AMR) applications.

After the spin-off from the TU Chemnitz, the Technologiegründerfonds Sachsen (TGFS) and GPS Ventures invested in Naventik in addition to the founders. In addition, a convertible loan was issued by the shareholders and the Mittelständische Beteiligungsgesellschaft Sachsen (MBG) to finance the company's growth.

The Transaction

Already with the spin-off from the TU Chemnitz as well as the participation of TGFS and GPS Ventures, the sale of the company to a suitable strategic investor was a basic exit option in order to accelerate and implement the necessary certification (Asil B) as well as the subsequent platform and series application of the developed software and technology, especially in the automotive and industrial (AGV/AMR, Drone) as well as railroad sector.

After the company had successfully implemented initial pilot projects in the automotive and industrial sectors and received PoCs and letters of support from leading OEMs, the question arose at the transaction date as to which partner and investment structure would be most suitable for driving forward and optimally supporting the marketing of the developed software and technology. During the transaction process the macroeconomic environment deteriorated due to the Ukraine conflict as well as rising inflation especially due to strongly increased material and energy costs, which led to rising interest rates. As a result, VC investors in particular became increasingly restrictive in their investment decisions.

Due to NAVENTIK's technology approach and the market environment, the main focus of the M&A process was placed on strategic investors and corresponding CVCs. For this purpose an international M&A process in auction format was conducted with relevant OEM's, semiconductor manufacturers and Tier 1's especially from Europe, USA and Asia to identify the best buyer.

After intensive dialogues, Swiss listed semiconductor manufacturer u-blox was ultimately selected as the optimal partner.

u-blox (SIX:UBXN) is the world's leading supplier of semiconductors, modules, software and solutions in the field of wireless communications and electronic positioning solutions for automotive, industrial and consumer markets. The products offered by u-blox enable people, vehicles and machines to determine their exact position and communicate wirelessly. Headquartered in Thalwil, Switzerland, u-blox has a global presence with operations in Europe, Asia and the United States.

Scope of Mandate

ARGONAS fully advised and supported TGFS and GPS Ventures as well as the founders and management of Naventik as exclusive sell-side M&A advisor in all streams of the preparation and implementation of the process.

Industry
Automotive & Industrial

Business Model
Development and licensing of high-precision positioning software (GNSS SDR) as a supplier for OEM’s, semiconductor manufacturers and system integrators

Products & Services
Absolute positioning using proprietary software satellite navigation (Positioning & Measurement Engine) and sensor fusion technology for ADAS solutions with functional safety for future applications in the field of autonomous driving and industry (AGV/AMR, rail, drones).

Website
www.naventik.de

Company Status
Start-up/Growth

Transaction Type
Sell-Side

Characteristics

Technology development phase (PoC and letter of support from major customers available; next step: technical certification (Asil B) and series production (automotive & industrial)
Technology relevance for very different target markets (automotive vs. industrial) with corresponding implications for transaction process and valuation
Competing technology approaches (Relative vs Absolute Positioning)
Macroeconomic market environment

Geographical Footprint
Germany/Switzerland

Transaction Date
September 2022

Contact

Sascha Männel

MANAGING DIRECTOR/CO-FOUNDER

Sascha Männel is Managing Director at ARGONAS and has more than 15 years of experience in the areas of Corporate Finance Advisory and Investment Banking.

At ARGONAS, Sascha is responsible for deal origination and market analysis and further supports M&A and financing projects across a wide range of industries, sectors and company situations. Sascha’s focus areas are businesses in the Industrial & Automotive, Engineering, Logistics and Packaging space as well as the support of growth companies and special situations.

Selected transaction references comprise inter alia the sale of the automotive positioning and software specialist Naventik to the Swiss listed semiconductor manufacturer u-blox AG and the sale of vPool Logistics to the Dutch Faber Halbertsma Group (Pooling Partners / PAKI Logistics).

Before co-founding ARGONAS, Sascha worked for Freitag & Co. in Frankfurt am Main from 2008 to 2009 and for IEG - Investment Banking in Berlin from 2009 to 2012, where he advised medium-sized companies and international groups on mid-market M&A transactions in Germany, Eastern Europe and Turkey. Previously, he worked for Berenberg Bank, E&Y, Freshfields and KPMG in Berlin and Hamburg.

Sascha holds a degree in business administration at the Bonn-Rhein-Sieg University of Applied Sciences in Sankt Augustin, a degree in business law at the University of Applied Sciences Nordhessen as well an MSc in Global Banking and Finance at the European Business School London (EBS London).