Companies news

Astek secured a record-breaking Financing of 560 million euros and Partnered with ICG to Accelerate its Organic Growth and Continue its Strategic Acquisitions

Astek is embarking on a new cycle of growth with enhanced financial capacity:

• Arrival of a new strategic partner: ICG
•  Establishment of a credit line up to 450 million euros, with renewed support from H.I.G. and the arrival of funds from APOLLO and PARTNERS GROUP.
• Astek's next goals: 10,000 employees in 2024, 1 billion euros in revenue by 2027, and strengthened operational performances with high double-digit organic growth exceeding market growth and a consistently improving EBITDA margin.

Astek, a leader in technology consulting, announced today the strengthening of its financial capabilities to continue its growth ambitions and active policy of targeted acquisitions. Astek welcomes ICG, a long-term investor and strategic partner, providing 110 million euros in financing to the Group.

Additionally, with the support of leading partners, Astek has secured a bond financing that could reach up to 450 million euros, bringing together funds from H.I.G. CAPITAL, the Group's financial partner since 2021, APOLLO CAPITAL MANAGEMENT, and PARTNERS GROUP.

An expanded financial capacity to support an ambitious strategic vision

Astek anticipates and responds to its clients' technological transformation challenges with innovative solutions, leveraging its expertise in AI, cloud, cybersecurity, and sustainability. The Group's development in recent years has been marked by strong activity, consistently improving profitability, and strengthened global positioning and expertise.

In 2023, Astek recorded a more than 20% increase in revenue, demonstrating very dynamic organic growth, supported by the integration of expertise from acquisitions. It has thus strengthened its presence in thriving sectors like Life Sciences and consolidated its international presence, particularly with American clients and offshore capabilities.

With 8,400 professionals and revenue exceeding 600 million euros pro forma from acquisitions, the Astek Group combines local expertise and global reach to deliver bespoke services. Astek's strategic positioning enables it to anticipate its clients' complex needs with advanced, sustainable technology solutions, thus reinforcing its role as a leading technology partner.

ICG as a strategic partner, as well as H.I.G. CAPITAL, APOLLO CAPITAL MANAGEMENT, and PARTNERS GROUP: recognized partners to support Astek's ambition.

The development strategy of Astek is supported by its alliance with leading partners. H.I.G. CAPITAL renews its support and confidence in Astek's development trajectory. With additional support from PARTNERS GROUP and APOLLO CAPITAL MANAGEMENT, two global leaders in financing, Astek will benefit from significant financial support.

ICG, known for its long-term investment approach focused on supporting founders and management teams in their growth projects, also supports the Group's development strategy. The arrival of ICG will enable Astek to continue its ambitions in acquisitions and innovation, while sharing a common vision of long-term value creation.

Astek is positioned for a new chapter of growth and increased profitability.

In 2024, Astek anticipates highly sustained organic growth, exceeding 40% in some of its subsidiaries, and the continuation of targeted external growth operations. The Group relies on a robust pipeline across its various regions and areas of expertise. Additionally, Astek intends to significantly increase its workforce and exceed the 10,000-employee threshold before the end of 2024, driven by solid operational performance.

Having reached its 2024 ambitions two years ahead of schedule, Astek has set new milestones for 2027:

• A new doubling of its turnover to reach 1 billion euros thanks to sustained organic growth, averaging close to 15% per year, and the continuation of strategic acquisitions in niche expertise and promising markets;
•  Increased profitability with a mid-teens EBITDA margin target, thanks to the global approach and sharing of know-how;
• A global workforce increased to 14,000 employees, strengthening its status as a global player;
• A sustained commitment to CSR, aiming in particular for carbon neutrality by 2027, in line with the SBTi initiatives in which the Group has enrolled, in addition to offering 'green computing' to its clients.

"This major step consolidates our journey towards our financial objectives and is a recognition of our strategic positioning in sectors with high potential. With the strengthened support of our financial partners and a clearly defined growth trajectory, we are more ready than ever to continue seizing strategic opportunities and pursuing our global expansion," said Jean-Luc Bernard, Founder and Chairman of the Supervisory Board of Astek.

"The entry of ICG as a long-term partner, as well as the expansion of our credit line, strengthen our strategic positioning and validate the growth trajectory we have initiated. This mark of confidence, following the initial support from H.I.G., and which I am very proud of, underscores the solidity of our fundamentals and our ability to deploy our ambitious vision. We are determined to maintain our growth momentum and remain the partner of choice in the digitalization of our clients. The commitment and expertise of our teams are the engine of our development, and I would like to thank them again," added Julien Gavaldon, President of the Management Board of Astek.

"We are very pleased to be able to accompany Jean-Luc and Julien in this new phase of development of Astek. We have been impressed by the growth trajectory of the Group, which confirms its positioning as a strategic partner for its clients as well as the efficiency of its operational model. There are numerous opportunities for external growth to complement the offering or extend international presence. With a responsive and experienced management team, we are confident that Astek is well positioned to benefit from sector growth," commented Laurent Catry, Managing Director at ICG.

SOURCE: Astek