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07/2021

CONCURRENT REAL-TIME acquired by SPECTRIS

UNITED STATES Software / Engineering & Design Software EV $100–350M

Context

Spectris plc has finalized the acquisition of Concurrent Real-Time from the private equity firm Battery Ventures, a maneuver designed to fundamentally strengthen the group’s Hottinger Brüel & Kjær (HBK) platform. The strategic rationale for this transaction centers on a "simulation-convergence" play, merging the target's technical operational depth in hard-real-time computing with the group’s established leadership in physical sensing and simulation software. This fusion effectively creates a specialized Virtual Test Division, providing the organization with the hardware-in-the-loop (HiL) capabilities required to virtually test products throughout the entire development cycle. This operation allows the group to execute a definitive structural expansion into the high-growth simulation market, complementing its existing specialized assets such as VI-grade. By incorporating the target's deterministic operating systems and high-performance hardware, the organization can now provide a more robust and integrated solution set for "Zero Prototypes" vehicle development. The maneuver optimizes the group's financial profile by adding a high-margin, profitable technology brand that serves as a critical enabler of faster product life cycles. Ultimately, the partnership solidifies the group’s standing as a primary enabler of virtual testing innovation, bridging the gap between sophisticated laboratory-grade simulation and industrialized hardware testing standards.

CONCURRENT REAL-TIME, which reported an EBITDA margin of [members only] in 2021, is valued in this transaction at an EV/EBITDA multiple of 15x–25x, representing a premium to the average currently observed in the TMT (Tech, Media, Telecom) sector (14.6x).

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Target

Concurrent Real-Time operates as a premier technology organization dedicated to the engineering and distribution of high-performance real-time computational hardware and software. The entity’s business model is centered on a proprietary framework of real-time operating systems (RTOS), specifically its RedHawk Linux platform, which provides deterministic, low-latency performance for mission-critical applications. Its value proposition is anchored in technical operational depth, offering hardware-in-the-loop (HiL) simulation solutions that allow engineers to test complex control systems against virtual environments in real time. Strategically, the firm focuses on the rigorous demands of the aerospace, defense, and automotive sectors, ensuring that simulated data precisely matches physical world dynamics. By maintaining a specialized focus on multi-core multiprocessing and high-speed data acquisition, the organization ensures a vital role in the structural efficiency of advanced vehicle development. The entity prioritizes technical reliability and industrialized scalability to facilitate the structural advancement of virtual prototyping standards.

Ent. Value

$100–350M

Equity Value

[members only]

Multiples

EV / Revenue

2x–6x

EV / EBITDA

15x–25x

EV / EBIT

[members only]

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2021
$25–50M
$5–25M
[members only]
2020
$25–50M
$5–25M
[members only]

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REFERENCES

Valuation range: EV $100–350M

Revenue range: $25–50M

EBITDA range: $5–25M

EV/Revenue range: 2x - 6x

EV/EBITDA range: 15x - 25x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of CONCURRENT REAL-TIME by SPECTRIS are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: concurrent real-time

Acquirer: spectris