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The Azkoyen Group acquires 100% of Vendon and becomes one of Europe’s leading IoT solution providers

Grupo Azkoyen | The Azkoyen Group acquires 100% of Vendon and becomes one of Europe’s leading IoT solution providers
4 Jul 2022
  • This Latvian company is the leader in global IoT, telemetry and payment solutions for the vending and coffee machine businesses in Central Europe
  • The new company will contribute to the growth of the means of payment division and to the development of the Coges and Cashlogy brands
  • The Azkoyen Group will have more than 100,000 connected machines throughout Europe in 2022
  • The purchase price is 9.3 million euros with additional payments based on future sales
  • The digital means of paymentconnectivity and IoT segment has been growing steadily by more than 20% each year for the last 7 years

The Azkoyen Group, a leading Spanish technology multinational that provides automated products and services, designed to bring unique experiences to people in their daily lives, today announced the 100% acquisition of the Latvian company (part of the Draugiem Group), Vendon, a leader in connectivity and IoT solutions for digital payments and telemetry in Central Europe.

The initial cash consideration to be paid for Vendon is 9.3 million euros and possible further payments of up to 4 million euros, contingent upon the 2022-2024 business plan sales targets being achieved, which, in its final year, would amount to 8.5 million euros.

The company, founded in 2011 and based in Riga, with its most important markets being in France, Germany, Benelux and the UK, has over 45,000 connected machines. During these 11 years, the company has grown from a European operator to a global player, with machines connected in more than 82 countries. In addition, more than 55% of its turnover comes from recurring payments, thanks to stable contracts with its customers. Vendon’s potential lies in its high level of expertise and R&D, which is why both the management team and the company’s employees (34 in total) will become part of the Azkoyen Group after the takeover.

Strong synergies

This acquisition reinforces the international growth of the Azkoyen Group, currently the leader in Southern Europe, whilst Vendon is the leader in Central Europe. Furthermore, the acquisition is a major boost for the payment systems, platforms and IoT solutions division, the largest contributor to the group’s Ebitda.

The acquisition of Vendon also complements and accelerates the performance of the Azkoyen Group due to the multiple synergies generated both in the expansion of the business and in the development of new technologies and services.

Integrating Vendon into the Group will boost both the means of payment division and the Coges and Cashlogy businesses by developing new integrated systems, physical means of payment and cloud intelligence. The new services will help Azkoyen’s customers (owners of coffee machines, vending machines and in-store payment systems) to optimise their business by reducing maintenance visits and procedures thanks to online intervention and data analysis that allows them to study machine performance, monitor in real time, remotely control stock levels and use innovative contactless payment systems and mobile payment and improve the customer experience.

The development and implementation of this new Vendon technology will allow the Azkoyen Group to offer a range of innovative solutions to its customers, which will translate into a clear increase in value and business results.

This acquisition is a further step in the growth strategy of the Azkoyen Group, which has already demonstrated a strong effort to develop and expand its payment methods, connectivity and IoT segments, the segments with the greatest growth and potential for the Group.

Commenting on the acquisition, Juan José Suárez, Chairman of the Azkoyen Group, said: “We are very pleased about the acquisition of Vendon, not only because it is a great company with tremendous expertise, talent and vast experience in R&D, but also because of the many synergies generated, which will have a major impact on our growth plans and on our revenues in the payment, connectivity and IoT segments, which are so important to our development. The innovations and solutions that Vendon contributes to the Group will benefit our customers by improving their profitability in the short, medium and long term”.

Vendon’s CEO, Kristiāns Vēber, also added: “Vendon was founded more than 10 years ago and since then we have achieved great success. We have grown from a small IoT company in Latvia to a well-respected global player in the market. This would not have been possible without our team and our partners, who have made this dream come true. I believe that this strategic acquisition by the Azkoyen Group will open new doors for both companies. The Azkoyen Group is, without a doubt, the most suitable partner for Vendon that will help take the company to the next level. I am very excited about what the future holds and look forward to working as part of the Azkoyen Group.”

“We are truly proud that Vendon, a Draugiem Group company, has been recognised as a strong player in the global telemetry market, along with its solutions and impressive customer base. This agreement also confirms that we are able to create effective IoT solutions in Latvia”, emphasised the Draugiem Group spokesperson, Jānis Palkavnieks.

“BaltCap’s goal has always been to help growing companies in this region realise their true potential by helping local talent elevate their projects to the world stage. Within the Azkoyen Group, the Vendon team will have the opportunity to broaden their horizons and develop new cutting-edge technological solutions”, added Martins Jaunarajs, a partner in BaltCap, the largest private equity fund in the Baltics, and a former majority shareholder in Vendon, which he helped to grow over the last ten years to become a major force in its sector.