Silver Investment Partners acquires ALVARA Cash Management Group

  • Acquisition by long-term investor facilitates management succession for software specialist in cash management
  • ALVARA has attractive growth prospects as the only system provider of solutions for the entire cash cycle
  • Plans for investment in internationalization and further acquisitions

Königstein/Leipzig, October 01, 2018 – Silver Investment Partners (SIP) has acquired a majority shareholding in the privately-owned cash logistics specialist ALVARA Cash Management Group AG (ALVARA). The company is a leading provider of software solutions to all parties involved in the cash cycle to manage, automate and monitor cash management. With this transaction, ALVARA lays the foundation for the development of an orderly management succession plan. In addition to SIP, the second management level will also acquire a minority stake as part of the takeover. The former majority shareholder and founder of ALVARA, Bernd Hohlfeld, also retains a minority stake in the company and, in the medium term, will continue to be responsible for the operative business as a board member. Both parties have agreed not to disclose the purchase price.

“I am delighted that we have gained a strong and long-term partner in Silver Investment Partners, with whom we can develop an orderly management succession plan for ALVARA and at the same time pursue new growth opportunities”, says Bernd Hohlfeld, CEO and founder of ALVARA.“

ALVARA holds a unique market position. The company is the only provider in the cash cycle to offer software solutions for all stakeholders from a single source”, says Philipp Amereller, Managing Partner of SIP. “We will help ALVARA capitalize on this excellent base and further extend its leading market position.”

Exclusive product offering across the entire cash cycle

The predecessor company of ALVARA was founded in 1996 in Leipzig. Since then, the company has become a leading provider of custom IT solutions and related cash management services. With around 30 employees, the company provides software solutions for retailers, cash-in-transit companies and financial institutions, predominantly in the DACH region. As such, ALVARA serves all parties involved in payment transactions from a single source and has a diversified customer base. Retailers such as REWE and cash-in-transit companies such as SecurePost in Switzerland represent the largest customer groups.

The company’s solutions enable customers to better control, automate and monitor the entire cash cycle: from the point-of-sale checkout counter to the cash-in-transit company and the responsible bank, right back to the ATM. Cloud-based software enables customers to efficiently capture and track cash balances and cash flows. The embedding of customer data in the ALVARA Cloud also simplifies the interaction between the individual players in the cash cycle. This increases the transparency, cost-efficiency and security of payments for the customers and the risk of fraud is minimized. Customers save on insurance premiums, can free up resources and optimize lead times.

Attractive growth prospects

ALVARA is the only German provider of completely integrated software solutions with know-how of the entire cash cycle as well as interfaces and data sources from the entire process. So far, many retailers, cash-in-transit companies and banks rely on resource-intensive proprietary solutions based on outdated technologies. This puts ALVARA in a unique position to meet the growing need for transparent, cost-effective and secure cash management IT solutions and to attract new customers.

“We see tremendous growth potential for ALVARA, both in expanding its customer base and expanding internationally”, says Philipp Amereller. The company has already created a basis for international growth through its product portfolio and existing customers. The ALVARA software is already being used by existing customers like REWE at locations outside the DACH region. Downstream players in the cash cycle of these countries often do not yet use the company’s solutions. The scalability of the ALVARA software offers potential for more efficient management of the cash cycle and international expansion of the company. In addition, ALVARA is the first and only company to have a fully integrated and certified solution that interfaces with the Bundesbank’s CashEDI system. This system will gradually be adopted by other central banks for more efficient cash management. This results in further international growth potential for ALVARA.  

Partnership development of the company

SIP will support ALVARA as an entrepreneurial partner in the further development through organic growth and selective acquisitions in the industry. The focus of SIP will be to offer sustainable support to its portfolio company, which will benefit from the know-how, network and long-term orientation of the investor.

Together with Bernd Hohlfeld and the strong second management level of ALVARA, SIP will continue the company’s growth strategy and sustainably expand its market coverage. The second management level will also participate in ALVARA as part of the transaction, which underlines their conviction in the opportunities and the long-term success of the company.

SIP was advised on the transaction by GCA Altium (M & A), Rödl & Partner (Financial), KWM Europe (Legal and Taxes) and TZ Consulting (IT). The sellers have mandated PWC (M & A and Legal) as advisors.