A partnership that has cracked the code

Transcription

1 June 2015 TEKLYNX and CM-CIC Investissement A partnership that has cracked the code

2 With subsidiaries in the USA, Germany, China and Singapore, Teklynx is a world-leading producer of software for managing and printing barcode labels. CEO Thierry Mauger explained how the company, based in the Gers region, came to generate over 85% of its revenue outside France. Thierry Mauger

3 TEKLYNX and CM-CIC Investissement, a highly reliable combination. What are the specific features of your market? Thierry Mauger: We work in a very particular niche, but it s also a universal market. It s niche because it involves highly specific software that links companies IT departments with the world of production and logistics. It s universal because all manufacturing companies around the world, from SMEs to huge multinationals, need to print barcode labels to trace and transport their products. Those two characteristics are the reason why we have very few competitors in the market, and why 85% of our revenue comes from outside France. How do you explain Teklynx s success? T. M.: We have an installed base of over 350,000 software packages, built up over 25 years; we have shown the reliability of our solutions and our ability to develop them. That requires constant work and investment to keep up with changes in companies IT systems (operating systems, databases and management systems), changes in regulations and symbology, and changes in specialist printing equipment. For example, there are over 100 brands of printers and thousands of models, and so we release several dozen new drivers every year. Our clients like the certainty that, with our solutions, they will be able to put the right data in the right place on the right size of label, at the right time and using the right printer. That s crucial, because the slightest mistake in this area can prove very costly. So we have a lot of clients who have been working with us for decades. What are your main areas of development today? T. M.: The first objective is to maximise client retention by offering them pay-per-time subscriptions. They don t buy the software itself, but the right to use it for a certain amount of time, which they can top up. This means that they have greater visibility regarding cost, and they can be sure that they are using most upto-date version of the software. The benefit for us is that this evens out our revenue, avoiding any yo-yo effect resulting from major IT transitions. The second objective is to win new clients, offering a more specialist service to sectors that have specific requirements, such as the chemicals and pharmaceuticals industries. The third objective is to carry out acquisitions, provided that they are a good fit with our business.

4 What is your relationship with CM-CIC Investissement? T. M.: In 2010, US group Brady suggested that I buy its Teklynx division, which I had been managing for 10 years. After consulting various investors about putting together an LBO, I was drawn to CM-CIC Investissement, which offered a combination of technical expertise and guidance. Since then, we have built a relationship of trust, and my contacts at CM-CIC Investissement give me the benefit of their perspective and years of experience in various markets. When we carried out our recent secondary LBO, I had no hesitation in using their services again. 12 million of revenue 10 % annual growth 85 % of revenue from exports

5 TEKLYNX as seen by Alexandre Joubert, CM-CIC Investissement. Alexandre Joubert CM-CIC Investissement worked with Teklynx for the first time in late 2010, helping Thierry Mauger and Alex Guderzo acquire the Teklynx business from US-based group Brady Corporation. The company is based in Auch, in the Gers region of France, but also has operations in Germany, Italy, the USA, Singapore and Shanghai. Teklynx produces software for a niche market, involving the automatic identification and tracing of products using barcode solutions. Teklynx s systems enable clients to extract, with precision, detailed information about the quantity, location and condition of all kinds of objects, at any time, anywhere in the world. Barcode technology is regarded as an effective, stable solution, and is very widely used in manufacturing. Companies are continuing to adopt it for various applications, such as improving ERP, complying with regulations and standards in each industry, and enhancing the supply chain. With its strongly innovation-focused investment policy, Teklynx is a leading player in Europe and has an installed base of over 350,000 software packages in 120 countries. Very recently, we made a further investment alongside Teklynx s management. As a result, they now have a majority stake in the group and the resources to maintain the growth momentum resulting from development of the software-as-a-service offering and the launch of new business applications.

6 Edmund Hillary and Tensing Norgay s of Everest in NOTHING IMPORTANT IS ACHIEVED WITHOUT TRUST This conviction inspires the men and women of CM-CIC Investissement on a day-to-day basis in their relations with the entrepreneurs they work with over the long term. We cover all areas of corporate fi nance - including venture capital, expansion capital, buyout fi nancing and M&A advisory - in order to meet companies equity fi nancing needs. In addition to professionalism, it is this resolutely peoplebased view of the business and this local relationship with business owners that characterise the success of our approach. CM-CIC Investissement - Bordeaux 23, parvis des Chartrons BORDEAUX Tél Paris - Lyon - Nantes - Lille - Strasbourg - Bordeaux - Montréal Head offi ce 28 avenue de l Opéra PARIS