Neckarsulm, 1 December 2023 – Bechtle has successfully placed convertible bonds with a total nominal value of 300 million euros and a term of seven years. The aim of the capital measure is to finance further growth of the Bechtle Group in Germany and abroad, including through acquisitions. Since it was founded, the IT company has acquired 113 companies across Europe, thus significantly expanding its own market position in 14 countries. Most recently, Bechtle financed the company acquisitions via traditional loan agreements. However, the current high level of interest rates has now made financing via convertible bonds attractive for the first time. This form of financing can not only lead to an improved capital structure for Germany's largest IT system house, but also reduces financing costs.The convertible bonds were oversubscribed by multiple times.
“For Bechtle as a listed company, the successful issue of the convertible bonds is an important step towards securing a high degree of strategic financial flexibility, even in times of high interest rates. This applies to both organic and inorganic growth options, which primarily include attractive acquisitions and investments,” says Dr Thomas Olemotz, Chairman of the Executive Board of Bechtle AG. Bechtle achieved a considerable strengthening of its competitive position in Europe through numerous company acquisitions and thus achieved a significant increase in area coverage. In 2023 alone, Bechtle acquired seven companies in six European countries: the UK, the Netherlands, Switzerland, France, Spain and Germany.
Expansion into promising business areas
In addition, Bechtle intends to use the liquidity newly available through the convertible bonds to expand promising business areas such as artificial intelligence. In October, the company acquired a stake in an attractive German AI company, Planet AI. “Through the convertible bonds, we offer investors the opportunity to participate in Bechtle's promising prospects as an IT partner of the future and to participate in shaping the omnipresent digital transformation of the economy and public administration,” says Dr Thomas Olemotz. “The successful placement of the convertible bonds shows investors' confidence in our business model and in the promising future prospects of our company.”
General Meeting enabled convertible bonds
The basis for the use of this financing instrument were the approvals granted by the General Meeting on 15 June 2021 to issue convertible bonds and to exclude the subscription rights of existing shareholders. The convertible bonds were offered exclusively to institutional investors outside the USA as part of an accelerated book-building process. UniCredit Bank and Commerzbank acted as Joint Global Coordinators and Joint Bookrunners for the transaction.
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About Bechtle:
Bechtle has more than 85 IT system houses that enable the company to be close to its customers. With IT E-Commerce companies in 14 countries, Bechtle is one of Europe’s leading IT enterprises. Moreover, Bechtle boasts a worldwide network of partners that caters to the needs of customers that operate around the globe. Founded in 1983, the Bechtle Group is headquartered in Neckarsulm, Germany, and currently has more than 14,800 employees. We support our 70,000+ customers from the fields of industry and trade, the public sector and the financial market on their digital transformation journey and offer a comprehensive, cross-vendor portfolio of IT infrastructure and IT operation solutions. Bechtle is listed in the MDAX and TecDAX indexes. In 2022, its revenue amounted to €6.03 billion. In 2023, Bechtle celebrates its 40th anniversary. For more information, see bechtle.com.
Important Notice
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This announcement and the offer, when made, in member states of the European Economic Area (EEA) or in the United Kingdom (UK), are only addressed to and directed at persons who are "qualified investors" as defined in the Prospectus Regulation (Qualified Investors). For these purposes, the expression "Prospectus Regulation" means Regulation EU 2017/1129 and Regulation EU 2017/1129 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 (the EUWA), in each case as amended.
In the UK, this announcement is directed only at, Qualified Investors (i) who have professional experience in matters relating to investments falling within Article19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the Order), (ii) who fall within Article 49(2)(a) to (d) of the Order, or (iii) to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). This announcement must not be acted on or relied on (i) in the UK, by persons who are not relevant persons, and (ii) in any member state of the EEA, by persons who are not Qualified Investors.
Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended (MiFID II); (b) Articles 9 and 10 of Commission Delegated Directive EU 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the MiFID II Product Governance Requirements), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the Convertible Bonds have been subject to a product approval process, which has determined that: (i) the target market for the Convertible Bonds is eligible counterparties and professional clients only, each as defined in MiFID II; and (ii) all channels for distribution of the Convertible Bonds to eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the Convertible Bonds (a distributor) should take into consideration the manufacturer's target market assessment; however, a distributor subject to MiFID II is responsible for undertaking its own target market assessment in respect of the Convertible Bonds (by either adopting or refining the manufacturer's target market assessment) and determining appropriate distribution channels. The target market assessment is without prejudice to the requirements of any contractual or legal selling restrictions in relation to any offering of the Convertible Bonds and/or the underlying shares. For the avoidance of doubt, the target market assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MIFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any action whatsoever with respect to the Convertible Bonds.
The Convertible Bonds are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the EEA or the UK. For these purposes, a "retail investor" means (a) in the EEA, a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of MIFID II; (ii) a customer within the meaning of Directive EU 2016/97 (as amended, the Insurance Distribution Directive), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MIFID II; or (iii) not a Qualified Investor as defined in the Prospectus Regulation and (b) in the UK, a person who is one (or more) of (i) a retail client within the meaning of Regulation EU 2017/565 as it forms part of UK domestic law by virtue of the EUWA or (ii) a customer within the meaning of the provisions of the Financial Services and Markets Act 2000 of the UK (the FSMA) and any rules or regulations made under the FSMA to implement Directive EU 2016/97, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation EU 600/2014 as it forms part of UK domestic law by virtue of the EUWA. Consequently, no key information document required by Regulation EU 1286/2014 (the EU PRIIPs Regulation) or the EU PRIIPs Regulation as it forms part of UK domestic law by virtue of the EUWA (the UK PRIIPs Regulation) for offering or selling the Convertible Bonds or otherwise making them available to retail investors in the EEA or the UK has been prepared and therefore offering or selling the Convertible Bonds or otherwise making them available to any retail investor in the EEA or the UK may be unlawful under the EU PRIIPs Regulation and/or the UK PRIIPs Regulation.
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The date of admission of the Convertible Bonds to trading may be influenced by things such as market conditions. There is no guarantee that admission will occur and you should not base your financial decisions on the Issuer's intentions in relation to admission at this stage. Acquiring investments to which this announcement relates may expose an investor to a significant risk of losing all of the amount invested. Persons considering making such investments should consult an authorised person specialising in advising on such investments. This announcement does not constitute a recommendation concerning the Convertible Bond offering. The value of shares can decrease as well as increase. Potential investors should consult a professional advisor as to the suitability of the Convertible Bonds offering for the person concerned.
