Sevdesk continues their success story together with Cegid

In 2013, Fabian Silberer and Marco Reinbold, university friends, founded sevdesk GmbH with a vision to assist self-employed individuals and small businesses in overcoming bookkeeping and accounting challenges. Headquartered in Offenburg, Germany, sevdesk has grown into a leading provider of next-generation integrated business management software applications, serving over 130,000 Micro and SMB customers¹, as well as accounting and tax advisory professionals in the DACH region. Their cloud-native solutions have facilitated over €85 billion in invoiced transactions to date.

Sevdesk enables SMBs and micropreneurs to handle their own bookkeeping and taxes independently while offering a comprehensive solution that enables tax advisors to manage more clients efficiently. With a strong focus on technology, usability, data security, and regulatory compliance, sevdesk is driving digital transformation and preparing its customers for the upcoming e-invoicing reforms set to begin from 2025 onwards.

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PwC had been a trusted legal advisor for over 5 years. The shareholders asked PwC GmbH WPG Corporate Finance to help them explore strategic options to further grow the company. The objective was to find the right partner that could support the next phase of growth and value creation, particularly in light of upcoming electronic invoicing reforms.

Acting as the exclusive M&A advisor, the PwC CF team coordinated with the client's advisors and management, identified and engaged potential investors, evaluated offers, and provided strategic advice during the Due Diligence phase. PwC played a crucial role in identifying a growth partner that not only had the financial strength but also shared the cultural fit and entrepreneurial mindset of sevdesk's founders.

The PwC CF team facilitated negotiations, coordinated data room arrangements, managed the Q&A process, and reviewed key commercial terms and financial implications in the transaction documentation. Additionally, other PwC Deals teams offered extensive support across legal, finance, tax, and valuation aspects, ensuring an integrated and holistic advisory service. PwC was able to address all facets of the transaction, maximizing value for sevdesk's shareholders while ensuring the right partner was found. In the end, securing a favourable price for a loss-making business in such a challenging market underscores the PwC CF team's exceptional efforts and sevdesk's strong market position.

Marked by its complexity and intensity, the transaction involved a multitude of advisors, far exceeding the number the founders saw in their financing rounds. This required meticulous coordination and management to keep the process on track and ensure all parties were aligned. The ability to maintain such a high level of operational efficiency within a compressed timeline was a testament to the PwC CF team's experience and dedication.

The market conditions during the sale process were extremely challenging, characterized by numerous failed processes and heightened competition. Despite these difficulties, sevdesk attracted significant attention from private equity firms and renowned M&A advisors on the buyside, underscoring the company's market position and growth potential. The process was highly competitive, with a very tight timeline that was successfully adhered to, showcasing the PwC CF team's ability to maintain momentum and drive the transaction forward under pressure.

Paris-based Cegid, a European provider of cloud management solutions for finance (treasury, tax, ERP), human resources (payroll, talent management), accountancy, retail, and entrepreneurship, emerged as the ideal growth partner for the client through a highly competitive process. They fully supported sevdesk's founders' vision, had the right cultural fit, and possessed the entrepreneurial mindset that the founders were looking for in a new partner. With it's financial capabilities, Cegid is well-positioned to help the founders realize their ambitious goals and drive future growth.

The acquisition will enable sevdesk to further facilitate the digital transformation of small and medium-sized businesses, enabling them to operate more efficiently and comply with new regulatory requirements. Customers will be able to effectively prepare for the upcoming e-invoicing regulations in Germany, which will be fully mandatory by 2028 and will significantly multiply their customer base.

The acquisition enhances Cegid's presence in the DACH region and expands its offerings in the Micro and SMB business management software sector. For Cegid, joining forces with sevdesk marks another major milestone in international growth by expanding its offering in German-speaking Europe where it is already present with its HR and talent management solutions. It further accelerates its high growth focus within the Micro and SMB Business Management cloud-based software segment.