‘Private equity can take your company to the next level’
West Flemish technology company Televic started out as a manufacturer of professional radio systems, but has achieved significant innovation and international growth over the years. It called on Gimv for external financing. ‘A milestone that can also inspire other companies,’ says Joost Pieters, Chief Commercial Officer at ABN AMRO MeesPierson.
Televic will celebrate its 80th anniversary in two years' time. At the turn of the century, the Izegem-based company seemed to have stalled somewhat, but then engineers Lieven Danneels and Thomas Verstraeten took over. Together, they transformed Televic into an international player specialising high-tech, high-quality communication systems in four niche markets: healthcare, education, the rail industry and the conference market.
Stable partner
‘We are now the market leader in multiple areas,’ Verstraeten says. ’Anyone who has ever been in hospital has probably seen or used our patient alarm. We are pleased to count nine out of ten Belgian hospitals as our customers. We had to look beyond our national borders for further growth. This was only possible thanks to a clear vision of technological trends, a focus on innovation and a strong customer focus.’
In 2020, Televic joined forces with Gimv to accelerate its plans for international growth. The Flemish investment company acquired a 40% minority stake. This 60-million-euro investment was Gimv's largest capital injection ever. ‘Private equity, i.e. capital from external investors, can take companies to the next level, for example by including new products and services in their range or by making an international breakthrough,’ Joost Pieters adds.
He has been Head of Entrepreneurship & Business at ABN AMRO Private Banking Belgium since October 2022. ‘My department combines the strength and knowledge of corporate and private banking. A specialised team acts as a sparring partner to our clients to help them meet both their business and private needs.’
Pieters adds that the private equity landscape is exceptionally diverse. ‘There are local and international players, generalists and specialists. And the type of fund can also vary greatly. Closed-end funds have a limited horizon, while open-end funds stay with companies for quite a long time. They deliberately take a long-term view.’
‘Choose a partner that suits your DNA,’ Danneels says. ’Gimv's stake in Televic followed our 2019 acquisition of GSP Sprachtechnologie, a German supplier of train information systems. Over the previous twenty years, we increased our turnover from less than 8 million to 130 million euros. That growth was the result of a significant expansion of our range and internationalisation. But it all happened in small steps. The acquisition of GSP meant we grew by a third in one go. This clearly took us to the next level, so we needed an experienced and stable long-term partner. Gimv fully supported our ambition to double Televic's turnover within five to six years.’
Sensitive discussion
New technologies, such as artificial intelligence and machine learning, are advancing at an ever-increasing pace. ‘Those who lag behind will suffer,’ Verstraeten says. ‘For example, we develop solutions that we integrate into train management and onboarding systems. We train computers to recognise data and patterns for SNCB in Belgium, but also for companies in the UK, China and Egypt. It is a huge challenge. Communication on trains had better be accurate, and the same goes for communication in hospitals. You can't simply use Google Translate to convert sensitive discussions in the European Parliament or the United Nations into a different language. It's essential we don't add any extra risks.’
