– Acquisition by a long-term oriented investor enables the development of a succession structure for software specialists in cash management
– ALVARA with attractive growth prospects as the only system provider of solutions for the entire cash cycle plans for investments in internationalization and further acquisitions
– Plans for investments in internationalization and further acquisitions
Silver Investment Partners (SIP) is taking a majority stake in the medium-sized cash logistics specialist ALVARA Cash Management Group AG (ALVARA). The company is a leading provider of software solutions for all players in the cash cycle for controlling, automating, and monitoring cash management. With this transaction, ALVARA lays the foundation for the development of an orderly succession plan. In addition to SIP, the second management level will also take a minority stake in the company as part of the acquisition. The previous majority owner and founder of ALVARA, Bernd Hohlfeld, will also retain a minority stake in the company and will continue to be responsible for the operational business as a board member in the medium term. The purchase price has been agreed to remain confidential.
“I am pleased that with Silver Investment Partners we have gained a strong and long-term partner with whom we can develop an orderly succession for ALVARA while also exploring new growth paths,” says Bernd Hohlfeld, CEO and founder of ALVARA.
“ALVARA has a unique market position. As the only provider in the cash cycle, the company offers software solutions for all involved parties from a single source,” says Philipp Amereller, managing partner at SIP. “We will support ALVARA in leveraging this excellent starting base and further expanding its leading market position.”
Exclusive Product Offering Across the Entire Cash Cycle
The predecessor of ALVARA was founded in 1996 in Leipzig. Since then, the company has developed into a leading provider of individual IT solutions and related services for cash management. With around 30 employees, the company provides software solutions for retailers, cash service providers, and financial institutions primarily in the DACH region. ALVARA caters to all parties involved in payment transactions from a single source and has a diversified customer base. Retailers like REWE and cash service providers like SecurePost in Switzerland represent the largest customer groups.
The company's solutions allow customers to better control, automate, and monitor the entire cash cycle: from the supermarket checkout through the cash transporter and the responsible bank back to the ATM. Using cloud-based software, customers can efficiently capture and track cash inventories and payment flows. The embedding of customer data in the ALVARA Cloud also simplifies the interaction of the various players in the cash cycle with each other. This increases transparency, cost efficiency, and security in payment transactions for customers and minimizes the risk of fraud. Customers save on insurance premiums, can free up resources, and optimize processing times.
Attractive Growth Prospects
ALVARA, as the only German provider of fully integrated software solutions, has the know-how of the entire cash cycle as well as interfaces and data sources from the complete process. So far, many retailers, cash service providers, and banks rely on resource-intensive proprietary solutions based on outdated technologies. This places ALVARA in a unique starting position to meet the growing demand for transparent, cost-efficient, and secure IT solutions for cash management and to acquire new customers.
“We see enormous growth potential for ALVARA, both in expanding the customer base and in international expansion,” says Philipp Amereller. Through its product portfolio and existing customers, the company has already created a basis for international growth. The ALVARA software is already being used by existing customers like REWE at locations outside the DACH region. Downstream players in the cash cycle in these countries often do not yet use the company’s solutions. The scalability of ALVARA software offers potential for more efficient cash cycle management and international expansion of the company. Additionally, ALVARA is the first and only company with a fully integrated and certified solution that includes an interface to the CashEDI system of the Bundesbank. This system is progressively adopted by other central banks for more efficient cash management. This results in further international growth potential for ALVARA.
Partnership-Based Business Development
SIP will support ALVARA as an entrepreneurially acting partner in further development through organic growth and selective acquisitions in the industry. SIP’s focus is on the sustainable guidance of the portfolio company. Portfolio companies benefit from the investor’s know-how, network, and long-term orientation.
Together with Bernd Hohlfeld and the strong second management level of ALVARA, SIP will continue the pursued growth strategy and sustainably expand the company’s market coverage. With conviction in the opportunities and long-term success of the company, the second management level will also take a minority stake in ALVARA as part of the transaction.
SIP was advised on the transaction by GCA Altium (M&A), Rödl & Partner (Financial), KWM Europe (Legal and Tax), and TZ Consulting (IT). The sellers have mandated PWC (M&A and Legal) as advisors.