MiddleGround Capital has successfully completed an acquisition agreement with Austrian computer vision company STEMMER IMAGING. The current management board of STEMMER IMAGING will continue to lead the company post-acquisition, ensuring continuity in operations. The acquisition reflects MiddleGround Capital’s strategic intent to enhance their portfolio with a firm that holds a strong position in the machine vision sector. This move is anticipated to support STEMMER IMAGING’s further growth and expansion into new markets.
MiddleGround Capital plans to extend an offer to all shareholders of STEMMER IMAGING to purchase the remaining shares at a price of €48 per share. This offer represents a 52% premium over the closing price as of July 19, 2024, and a 41% premium over the volume-weighted average share price of the past three months. The financial implication of this offer values STEMMER IMAGING at €312 million.
Takeover to Complete by End of 2024
The transaction is expected to finalize in the fourth quarter of 2024, without requiring a minimum acceptance threshold. Post-completion, MiddleGround Capital intends to take STEMMER IMAGING private, potentially involving a delisting from public trading. This strategic maneuver aims to streamline operations and focus on long-term growth without the pressures of public market scrutiny.
Support from STEMMER IMAGING Leadership
The Management Board and Supervisory Board of STEMMER IMAGING have expressed their support for the takeover offer, pending a review of the offer document. CEO Arne Dehn stated,
“MiddleGround Capital is a professional, entrepreneurial partner with operational expertise that understands our business and can support our growth strategy.”
This sentiment was echoed by Klaus Weinmann, Chairman of the Supervisory Board, who remarked,
“We are delighted about MiddleGround Capital’s interest in STEMMER IMAGING’s development.”
STEMMER IMAGING has experienced significant growth over recent years, which primes it for this next developmental phase. MiddleGround Capital’s Managing Partner John Stewart highlighted their expertise in value-added distribution as key to supporting STEMMER IMAGING’s expansion. Additionally, Alex van der Have, Managing Director and Head of Europe at MiddleGround Capital, noted their confidence in the synergy between industry 4.0 trends and STEMMER IMAGING’s capabilities, which positions the company for accelerated growth.
The potential delisting and transition to a private entity could allow for more agile decision-making and strategic planning, free from the constraints of public market reporting. Such a transformation could enable STEMMER IMAGING to focus on innovation and market expansion more effectively, ultimately benefiting customers and shareholders.
