INVESTCORP takes majority stake in NETROM SOFTWARE
Context
Investcorp Technology Partners has acquired a majority stake in NetRom Software. The transaction, announced in February 2023, follows a period of sustained revenue growth at NetRom and a history of collaboration with existing shareholders IceLake Capital and the company’s founders. ITP’s investment aligns with its strategy of backing high‑growth technology firms in Europe and expands its portfolio of software‑focused assets. The deal was structured as a majority equity purchase, with the founders and IceLake Capital retaining minority interests and governance participation. Advisory teams included PhiDelphi Corporate Finance and KPMG on the sell‑side and Willkie Farr & Gallagher on the financing side.\n\nFrom ITP’s perspective, the acquisition provides direct access to NetRom’s established delivery network of approximately 500 engineers and its client relationships across telecommunications, transportation and fleet management sectors. The firm intends to leverage its capital and operational expertise to accelerate NetRom’s expansion into additional verticals such as fintech and health‑tech, and to deepen its presence in North America. ITP also plans to enhance NetRom’s delivery platform through investments in automation, cloud-native tooling and talent development programs, thereby increasing utilization rates and margin profiles.\n\nPost‑transaction, NetRom is expected to integrate ITP’s strategic resources while maintaining its existing management team and corporate culture. The combined entity aims to broaden its service catalogue, introduce new pricing models and pursue acquisitions that complement its engineering capabilities. Anticipated outcomes include higher contract win rates in target markets, improved scalability of offshore delivery centres, and a stronger competitive position against regional software service providers. The partnership is projected to generate incremental revenue growth and expand the geographic footprint of NetRom’s operations over the next several years.
NETROM SOFTWARE, which reported an EBITDA margin of in 2023, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (15.1x).
-> Deep-dive in TMT (Tech, Media, Telecom) market trends
Target
NetRom Software is a cloud‑first digital transformation and software engineering firm headquartered in Utrecht, the Netherlands. The company delivers end‑to‑end software development, integration and support services to a diversified client base that includes telecommunications operator VodafoneZiggo, mobility provider Transdev and fleet management firm LeasePlan. Its service portfolio comprises custom application development, platform migration, DevOps enablement, quality assurance and managed maintenance, all delivered through a delivery model that combines on‑site consulting with offshore execution. NetRom operates four delivery centres located in the Netherlands and Romania, employing roughly 500 engineers with expertise in Java, .NET, cloud platforms and agile methodologies. The firm generates revenue primarily from multi‑year contracts that embed recurring development and support fees, supplemented by project‑based engagements. Since its founding, NetRom has expanded its geographic footprint across Western Europe and North America, establishing sales and support functions in key markets to serve multinational customers. The company’s growth strategy emphasizes deepening relationships within existing verticals such as telecoms, transportation and automotive leasing, while pursuing new opportunities in fintech and health‑tech through targeted acquisitions and organic capability building. NetRom’s operational model relies on a combination of high‑skill talent acquisition, continuous training programs and a proprietary delivery platform that standardizes code quality, security and performance monitoring.
Ent. Value
Equity Value
Multiples
EV / Revenue
EV / EBITDA
EV / EBIT
Historical Financials (USD)
Similar deals in IT Services
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 06/2023 | MEANINGS CAPITAL PARTNERS | JEMS GROUP | FRANCE | Data & AI Consulting |
| 03/2023 | ALLURITY (TRILL IMPACT) | SECURIX | SWITZERLAND | Cybersecurity Services |
| 02/2023 | HLD | INFODIS | FRANCE | Consulting & Integration |
| 12/2022 | SESA GROUP | CYRES CONSULTING | GERMANY | Cybersecurity Services |
| 11/2022 | SOPRA STERIA | TOBANIA | BELGIUM | Consulting & Integration |
| 09/2022 | KKR | BARRACUDA NETWORKS | UNITED STATES | Cybersecurity Services |
| 08/2022 | VINCI ENERGIES | KONTRON | GERMANY | MSP (Managed Services) |
| 05/2022 | THE CARLYLE GROUP | ManTech International Corporation | UNITED STATES | Cybersecurity Services |
| 05/2022 | PERMIRA | MIMECAST | UNITED STATES | Cybersecurity Services |
| 05/2022 | QINETIQ | AVANTUS FEDERAL | UNITED STATES | Cybersecurity Services |
REFERENCES
Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of NETROM SOFTWARE by INVESTCORP 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.
Press release: view release
Target: netrom software
Acquirer: investcorp