IK Partners agrees sale of MDT technologies to Bregal Unternehmerkapital

IK Partners has agreed to sell MDT technologies, a German building automation platform, to BU Bregal Unternehmerkapital, according to PE Hub. The transaction, made through IK Partners’ IK VIII Fund, is subject to customary regulatory approvals and no financial terms were disclosed.

The deal transfers ownership of a company that supplies KNX-based systems used to automate heating, ventilation and lighting in residential and commercial buildings. For private equity investors, the absence of a disclosed enterprise value or consideration means the financial return on IK’s 2020 investment cannot be assessed from the public information available.

MDT was founded in 1984 and is based in Engelskirchen, Germany, PE Hub reported. The company develops wired and wireless KNX components, sensors and cloud-enabled management systems for building automation. It employs about 250 people and has operations or market presence across Europe, India and the Middle East.

KNX-based building automation brings together devices that manage functions such as climate control and lighting. MDT’s portfolio includes actuators, sensors and system devices, along with management software connected to the cloud, according to PE Hub. In commercial and residential property, these systems are used to coordinate building functions through connected components rather than separate manual controls.

Expansion under IK ownership

IK Partners invested in MDT in March 2020. Since then, the company has more than doubled its output and broadened its product range to around 600 devices, PE Hub reported.

MDT also shifted its management structure during IK’s ownership. The business moved from a founder-led model to a full C-suite structure and added leadership capacity across research and development, operations and finance, according to PE Hub. It also developed dedicated sales, marketing and technical support functions.

The company expanded through acquisitions as well as internal development. PE Hub reported that MDT acquired Tense, Tapko and Apricum, adding design expertise and increasing its KNX software capabilities and geographic reach.

The acquired businesses broadened MDT’s offering in software and design, two areas that can be central to building automation platforms because product integration and system configuration affect how devices are deployed across buildings. PE Hub did not disclose the dates or financial terms of those acquisitions.

Energy and sustainability measures

MDT has set science-based emissions reduction targets, according to PE Hub. The company also sources 95 percent of its electricity from renewable sources.

The reported sustainability measures sit alongside MDT’s core market in building automation, where its products are used in systems controlling heating, ventilation and lighting. PE Hub did not provide details on the timetable or baseline for the company’s emissions targets.

Completion of the sale to BU Bregal Unternehmerkapital remains dependent on regulatory approvals. PE Hub did not report an expected closing date.

This story draws on original reporting from PE Hub.