METROLOGIC GROUP
Acquired by
SANDVIK
METROLOGIC GROUP acquired by SANDVIK
Target
METROLOGIC GROUP
Acquirer
SANDVIK
Context
In a move that significantly reinforces its digital manufacturing roadmap, Sandvik AB has entered into an agreement to acquire Metrologic Group from Astorg Partners. The transaction represents a valuation multiple that reflects Metrologic's high-margin profile and its critical position in the industrial software ecosystem. This acquisition is a cornerstone of Sandvik Machining Solutions' strategy to broaden its customer offering by integrating quality assurance and metrology into its existing metal-cutting expertise. The deal is structured as a strategic trade sale following a period of ownership by the private equity firm Astorg. Metrologic Group will be integrated into Sandvik as an independent business unit, ensuring the preservation of its "agnostic" brand status—a key requirement for maintaining its broad customer base of hardware competitors. This vertical integration allows Sandvik to link the machining and quality processes, offering a "closed-loop" manufacturing chain that reduces waste and increases precision for global OEMs. From a financial standpoint, the acquisition is expected to be initially neutral to slightly positive on earnings per share, with Metrologic's superior EBITDA margins expected to be accretive to the division. This transaction underscores the ongoing trend of large-scale industrial incumbents acquiring specialized software players to defend their market share against the rise of Industry 4.0 and to transition toward higher-margin, software-driven recurring revenue streams.
METROLOGIC GROUP, which reported an EBITDA margin of LOGIN in 2017, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (12.8x).
Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.
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Target
Metrologic Group is a global leader in the development of agnostic 3D inspection software and advanced electronics dedicated to dimensional control and metrology. Based in Meylan, France, the company specializes in providing high-precision solutions that interface with virtually all measuring machines available on the market. Its product portfolio encompasses a wide array of applications, including automation and robotics control, alongside specialized services for calibration and 3D measurement, serving critical sectors such as automotive, aerospace, energy, and medical. The company is distinguished by its market-leading position in the "agnostic" software space, meaning its solutions are compatible with a diverse range of hardware from various manufacturers. This unique positioning provides a significant competitive advantage in an industry often characterized by proprietary, closed-loop systems. Metrologic Group operates a highly efficient business model focused on software licensing and technical services
Ent. Value
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Equity Value
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Multiples Analysis
EV / Revenue
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EV / EBITDA
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EV / EBIT
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Historical Financials (EUR)
Other operations with METROLOGIC GROUP
| Date | Acquirer | Target | Country | Sector | Deal Context |
|---|---|---|---|---|---|
| 04/2015 | ASTORG | METROLOGIC GROUP | FRANCE | Software | Astorg Partners has entered into a definitive agreement to acquire a majority stake in Metrologic Group from Carlyle Europe Technology Partners, marking a successful secondary buyout transaction. The founder and existing management team are significant participants in this transaction, reinvesting alongside Astorg to ensure continuity of leadership and strategic direction. The rationale behind this investment centers on accelerating the next phase of growth, specifically targeting a leadership position in the emerging field of inline, robot-driven 3D measurements. By transitioning ownership to a sponsor with a proven track record in B2B software and specialized industrial niches, the company aims to strengthen its global market position. The strategy involves continuing the company’s history of systematic innovation and leveraging deep technical expertise to meet the evolving demands of customers in the automotive, aerospace, and energy sectors. This move reinforces the target's status as a top-tier global player, ensuring it has the capital and operational support to scale its specialized product portfolio worldwide. |
| 04/2011 | THE CARLYLE GROUP | METROLOGIC GROUP | FRANCE | Software | This of Metrologic Group by Carlyle represents a public-to-private buyout. The acquirer has secured a controlling interest in the company via the acquisition of shares held by the founder and management team. Following this initial acquisition, the firm initiated a simplified public tender offer to delist the company from Euronext Paris. The strategic rationale for the deal centers on facilitating the company's next phase of development as a private entity. By removing the constraints associated with public markets, the management team, in partnership with the sponsor, aims to focus on long-term growth initiatives, operational optimization, and the expansion of its core 3D measurement software offerings. This ownership transition enables the firm to invest more aggressively in product innovation and international market penetration while maintaining the founder’s operational vision, ensuring the continued leadership of the company in its specialized industrial niche. |
REFERENCES
Authors: mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).
Target: metrologic group
Acquirer: sandvik