13 November 2023
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Growth in the tourism software sector: Addleshaw Goddard advises management of Midoco Group on change of shareholders

Equity investor VR Equitypartner has acquired a significant minority stake in Midoco Holding GmbH. As part of the transaction, VR Equitypartner has acquired all shares from the previous financial investors. The Midoco management and founding team will retain a stake in the company. International law firm Addleshaw Goddard has advised the management comprehensively on the sale and reinvestment. The purchase price has not been disclosed.

VR Equitypartner and the Midoco management aim to further expand the Midoco Group and to continue the buy & build strategy in the coming years.

Steffen Faradi from Midoco says: "With VR Equitypartner, we have the right partner at our side to drive forward the international growth of the Midoco Group and further strengthen our good positioning in the DACH market. We want to achieve this through both organic and targeted inorganic growth. With its experience and expertise in M&A transactions, the VR Equitypartner team will provide us with excellent support. In regard, I would also like to thank the Addleshaw Goddard team for their outstanding cooperation in achieving this strategically important milestone for Midoco."

"We are delighted that we were once again able to successfully advise the founders of Midoco, whom we have been accompanying for many years, on this transaction," adds Dr. Hubertus Schröder from Addleshaw Goddard.

Midoco is a leading provider of mid-office software for the travel industry, uniting German Midoco GmbH in Hilden and Swiss Umbrella AG in Wetzikon. Established in 2005, the Midoco Group has extensive experience automation of processes in the travel industry, enabling customers in over 60 countries to efficiently manage their operations. The company processes 13 billion EUR in travel revenue annually. In 2018, Midoco acquired its competitor Umbrella AG.

VR Equitypartner, a subsidiary of DZ Bank, is one of the leading equity financiers for medium-sized family companies, the so-called Mittelstand, in the DACH region. Its involvement includes implementing growth plans, financing expansion, in company succession matters and with changes to shareholder structure. VR Equitypartner’s portfolio currently comprises approximately 60 companies with a total investment volume of 400 million EUR.

The Addleshaw Goddard team, led by Partner Dr. Hubertus Schröder (Corporate/M&A, Hamburg), included Dr. Natalia Ilyevich (Managing Associate, Corporate/M&A, Frankfurt) and Jens Peters (Counsel, Employment Law, Hamburg).

Addleshaw Goddard has deep industry expertise in the technology sector and regularly advises on software transactions, most recently the market entry of Banyan Software Group in Germany through the acquisition of Immo-Office.

Additional advisors:

VR Equity: McDermott Will & Emery (Dr. Michael Cziesla, Dr. Christian Marzlin)

Previous financial investors: Milbank (Dr. Michael Bernhardt, Johannes Wohlmuth)

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