Berlin, January 2020 – The Berlin software start-up Square Metrics GmbH (“Square Metrics”) has been successfully sold to a new investor within the framework of a transferable restructuring.
Square Metrics is a manufacturer of innovative SaaS (Software as a Service) solutions for asset & customer tracking applications. Square Metrics collects, processes and analyzes data on the movement of goods and customers in the retail & service, logistics and healthcare sectors using its own platform solution Proximity DMP. The combination of Mobile Tracking and Stationary Gateways creates versatile new use cases compared to existing solutions.
In February 2019, a corporate investor acquired a 49% stake in Square Metrics. In the course of the investment, Square Metrics secured financing in the mid single-digit million range. However, as a result of the change in the Group’s digital strategy, the investor acquired a repurchase of its share package in October 2019. The originally promised financing was therefore no longer guaranteed. Square Metrics filed for insolvency at Charlottenburg Local Court on October 17, 2019. Lawyer Prof. Dr. Torsten Martini from the law firm LEONHARDT RATTUNDE in Berlin was appointed as provisional insolvency administrator.
Within the scope of the initiated fast-track M&A process, Navkonzept GmbH (“Navkonzept”) from Mülheim an der Ruhr was identified as a suitable strategic buyer with extensive synergy potential. The transaction was implemented within 6 weeks after the start of the M&A process with the opening of insolvency proceedings. Navkonzept is specialized in telematics and fleet management solutions. The in-house developed telematics systems for tracking mobile objects of all kinds offer diverse business model synergies with the asset tracking solutions developed by Square Metrics.
The business operations of Square Metrics was transferred to Navkonzept GmbH as part of an asset deal on January 1, 2020. All employment relationships existing at the time of the opening of insolvency proceedings were retained.
FalkenSteg Corporate Finance acted as exclusive sell-side financial advisor to the insolvency administration.
About Square Metrics
Square Metrics was founded in 2014 to combine new technology trends with the increasing use of smartphones. Working with industry leaders, the company has evolved from a hardware manufacturer to a data management platform provider specializing in mobile tracking solutions. Square Metrics can evaluate and locate the location of customers or objects, both indoors and outdoors, with a strong focus on privacy and security. With the technology platform, Proximity DMP and a mobile SDK, sensor data can be collected, analyzed and visualized. This data can be used to optimize operations.
Since 2004, the company Navkonzept GmbH is specialized in telematic and fleet management solutions. The software house, located in Mülheim an der Ruhr, develops and markets modern telematics systems for locating mobile objects of all sorts. The software serves the optimization of processes, logistic sequences and transport procedures. In addition to an Internet platform for monitoring and evaluating driver and vehicle movements, Navkonzept offers a wide range of on-board computers, measuring sensors and black boxes for the most diverse requirements. The main products include the system “InternetLocating”, “TachoToWeb”, “NavBasic” and “NavApp”.
The customers of Navkonzept come from the transport and logistics industry and increasingly from the vehicle rental, taxi business, craftsmen, fitters, couriers and other service companies. Navkonzept originated from the Remscheid-based company “Funkvertrieb Linden” (founded 1973) and the system house “Nolden EDV” (founded 1991).
About LEONHARDT RATTUNDE
LEONHARDT RATTUNDE is one of the leading law firms for insolvency law in Germany. In addition to insolvency administration, the firm also offers restructuring advice, litigation, contract law and notary’s office services at its offices in Berlin, Erfurt, Kiel and Cologne. Nationwide, the law firm has 26 professionals, including 8 insolvency administrators and 3 notaries.
FalkenSteg advises decision makers from European industrial and service companies as well as international investment companies in special situations. With its consulting approach geared to special situations, the consulting specialist stands for recognised implementation competence, operational excellence and close partnership relations at eye level. FalkenSteg supports clients in their turnaround starting with financing projects, real estate management and corporate transactions up to out-of-court reorganisation or restructuring in the context of insolvency proceedings. The FalkenSteg team consists of more than 40 experts in corporate finance, restructuring and real estate.
In the field of corporate finance, FalkenSteg has been one of the leading market players for distressed M&A transactions in recent years. With a unit specialising in Start-Up Financial Advisory, FalkenSteg also advises founders, start-ups and their principals across all industries on all major issues in the area of “Tech in Trouble”.