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Original-Research: Deutsche Beteiligungs AG - from NuWays AG

03.09.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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Classification of NuWays AG to Deutsche Beteiligungs AG

Company Name: Deutsche Beteiligungs AG
ISIN: DE000A1TNUT7

Reason for the research: Update
Recommendation: BUY
from: 03.09.2025
Target price: EUR 39.00
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr

DBAG's deal machine is running well

Following the acquisition of FinMatch, DBAG has announced that Fund VIII has
agreed to acquire MAIT GmbH in a management buyout transaction. The
management team will reinvest significantly alongside the fund, which is
consistent with DBAG's longstanding approach of partnering with founders and
operational leaders. The deal is expected to close by the end of 2025,
subject to regulatory approvals. While concrete financial terms were not
disclosed by DBAG, the prior owner 3i Group stated gross proceeds of around
£ 143m, or some EUR 165m. Assuming industry-average leverage, especially in
light of MAIT's buy and build strategy from recent years, we expect the EV
to be around EUR 220-250m, making it one of DBAG's largest investments.

Following the acquisition of MAIT, the dry powder of the DBAG Fund VIII
should have decreased to roughly 40% of the funds EUR 1.1bn volume.

MAIT is a well-established IT services provider focused on the digital
transformation needs of the Mittelstand in the DACH region. The company
integrates enterprise resource planning (ERP), product lifecycle management
(PLM), and IT infrastructure services, with a focus on industries such as
machinery, electronics, and manufacturing. Over the past several years, MAIT
has expanded both organically and through a series of strategic
acquisitions, growing to EUR 200m annual sales (vs. EUR 60m in 2018) with large
parts being of recurring nature.

This acquisition fits squarely within DBAG's strategy of acquiring
high-quality, cash-generative businesses with room for operational
improvement and attractive long-term growth prospects. MAIT adds further
exposure to the digitalization trend in Germany's SME sector, a market that
remains underpenetrated in areas like PLM and data integration. Importantly,
this deal strengthens DBAG's position in software and IT services, which now
accounts for a growing portion of its portfolio (>20%). MAIT's recurring
revenue base and strong customer retention also contribute to greater
visibility in future earnings and valuation upside. As MAIT has
substantially grown through consolidating its markets (24 successfully
integrated acquisitions) and considering DBAG's dry powder, one should
expect further add-ons during the short- to mid-term, in our view.

At the current share price, we continue to regard DBAG as undervalued with
shareholder-friendly capital allocation. Mind you, the company has still
roughly EUR 13.5m of cash committed towards buy-backs while also offering a EUR
1.00 per share base dividend per year (currently 4.1% yield). Successful
exits and the related increase in net income from investment activity could
allow for additional special dividends and/or a continuation of the buy-back
program, in our view.

We hence confirm our BUY rating with an unchanged EUR 39 PT based on SOTP (DCF
for Fund Services + discount to our NAV per share estimate at year-end).

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=e6f8e5be935243db81d1bbd30471f725
For additional information visit our website:
https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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2192324 03.09.2025 CET/CEST

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