e-tec electronic GmbH has sold a 55% stake to Invest AG & Raiffeisen KMU

June 2018 — The shareholders of e-tec electronic GmbH have sold a 55% equity stake to Invest AG and Raiffeisen KMU Beteiligungs AG.

Founded in 1997, e-tec electronic GmbH is an Austrian retailer of electrical equipment, including computer and EDP, TV, mobile phones and software. The whole product portfolio includes more than 5,000 products. The company owns 18 physical stores (15 are under the brand e-tec and three under DiTech) in various locations in Austria and one of the most popular online shops for electronic devices. The company generated revenues of US$74 million in 2016–2017 with a stable profitability and a sound capital structure (equity ratio >50%).

Invest AG is the investment arm of the Raiffeisen bank group of Upper Austria and is one of Austria’s leading private equity funds, managing a volume of nearly US$205 million. Since its founding in 1994, Invest AG has invested equity and mezzanine capital in more than 140 companies in a wide range of sectors. Currently, 26 companies in Austria and the south of Germany rely on Invest AG’s expertise and benefit from its support in operational, commercial and strategic matters.

Raiffeisen KMU Beteiligungs AG is a fund of Raiffeisenlandesbank Oberösterreich AG and supports small and medium-sized companies in Upper Austria with generational changes (succession within the family, management buy-out or buy-in) as well as expansion or acquisition financing with equity capital and mezzanine financing. Since its founding in 2007, over 35 Upper Austrian entrepreneurs have trusted Raiffeisen KMU Beteiligungs AG as an investment partner. Whilst the operational management of the company remains in the hands of the owners, the companies benefit from a professional partnership, know-how and professional expertise, especially in commercial, financial and strategic matters.

Our role in the transaction

Oaklins' team in Austria acted as the exclusive sell-side advisor to e-tec electronic GmbH, one of the leading online shops for IT products in Austria. In 2001, the company was awarded the E-Commerce Quality Seal as a pioneer in its business area. In the course of a structured sale process, the investors Invest AG and Raiffeisen KMU Beteiligungs AG were identified.