CFAW Frankfurt Advises on Sale of Leading Custom Software Developer AraCom AG toMaxburg Capital Partners

Los Angeles, CA - June 9, 2023 Corporate Finance Associates is pleased to announce that CFAW Frankfurt advised AraCom IT Services AG, Gersthofen near Augsburg, on entering into a partnership with Maxburg. The Maxburg Beteiligungen IV fund, which is advised by Maxburg Capital Management GmbH, acquired a majority stake.

AraCom was founded in 1989 by Lothar Härle and Alexander Waidmann, who knew each other from their student days together, and is the top success story in the German custom software development sector. What began 25 years ago as a garage start-up has evolved into the market leader for customized software solutions beyond standard products in southern Germany. Today, the company, which is growing at an annual rate of approx. 20%, employs over 200 software developers at its locations in Augsburg, Munich, Stuttgart and Bamberg and serves well-known companies in the industrial, retail and automotive sectors.

Two years ago, the company's founders handed over entrepreneurial leadership to a management team led by Winfried Busch (CEO) and Dr. Christian Teitzel (COO). The acquisition by Maxburg now completes the entrepreneurial succession and lays the foundation for AraCom's further growth.

Maxburg, headquartered in Munich, is a renowned investment management company active in the German-speaking region. It focuses on long-term corporate investments with the aim of achieving lasting and sustainable value creation. Holding several shares in the software and IT consulting sectors, Maxburg boasts a great deal of experience in this sphere.

AraCom's succession is the third DMF Group has implemented successfully for a software development company since 2021. "This underlines our particular expertise in this sector. We are very pleased that Maxburg has emerged within the structured transaction process we conducted internationally as the most suitable acquirer to strengthen AraCom's strategic position and to support the implementation of its growth path," explain the two managing partners of DMF Group, Dr. Patrick Schmidl and Michael Dirkes.

"With DMF Group, we have selected an extremely professional partner who has successfully implemented and completed the transaction process with competence, a great deal of experience and the necessary tact. An optimal result was achieved for our company AraCom and its shareholders," say Lothar Härle and Alexander Waidmann.

AraCom CEO Winfried Busch adds: "With Maxburg as a shareholder, AraCom can once again accelerate its strong growth, including through acquisitions, and in the medium term also gain a foothold in other European countries."

"Lothar and Alexander, together with Winfried and his team, have built a fantastic company, and we look forward to continuing its profitable growth together with the management," comments Moritz Greve, partner at Maxburg. "We have analyzed the software development market intensively over the last few years and intend to further develop AraCom through both organic growth and acquisitions," adds Georg Landesvatter, partner at Maxburg.