Capital A, an investment firm operating in Belgium and the Netherlands, is acquiring a majority stake in ESC, based in East Flanders. With the additional capital and business expertise, the Ghent-based technology company aims to continue meeting the unrelenting demand for smart software and IT specialists.
Directors Carine and Philippe Smet will remain members of the board of directors, and the current management team will continue to oversee day-to-day operations. The additional capital will be used to further professionalize the IT company. Further expansion will take place both organically and through acquisitions.
ESC has 155 employees and specializes in Microsoft business software, modern workplaces, and e-business. The company has been named a Trends Gazelle for seven consecutive years and is Microsoft’s number one cloud partner for Dynamics 365 Business Central in Belgium. Following the acquisition of competitor SDE in 2020, ESC is now evolving further as the premier platform for the digital transformation of small and medium-sized enterprises in Belgium.
“The digital transformation among SMEs is in full swing. With an investment partner like Capital A, we can tailor our technology and consulting offerings even better to both customer demand and the needs of our employees,” says Benny Van Hyfte, CEO of ESC.
Based in Antwerp and Amsterdam, Capital A invests in companies in Belgium and the Netherlands with a proven track record of growth. In addition to providing capital, it offers access to a large, complementary network and financial and strategic expertise, and provides hands-on support when needed—for example, with further acquisitions.
“Today, companies are increasingly aware of the need for digitalization. ESC’s expertise ensures that these clients are fully supported throughout their digital transformation. We are very impressed by the growth trajectory ESC has followed in recent years and the added value they provide to their clients. We are therefore delighted to support ESC’s continued growth, together with the Smet family, management, and the broader team. ”In addition to our current activities, we will also continue to focus on product development and actively seek partnerships with other companies in neighboring countries to provide our clients with the best possible support,” says Robin Janssens, Investment Manager at Capital A.
ESC’s shareholders were advised by the investment bank Oaklins KBC Securities on the sale and received legal counsel from the law firm Ace Law. Eight Advisory Benelux provided financial and tax due diligence services.
About Capital A
Capital A is a new investment firm with a long history. Since 1982, the Capital A team has been responsible for mid-market private equity within ABN AMRO and was previously known as ABN AMRO Participaties. In 2018, the investment team at that time became independent as Capital A. The focus and approach have always remained the same. Capital A invests in companies in Belgium and the Netherlands with a clear growth profile (organic or through acquisitions). Our investments consist primarily of large minority or small majority stakes—after all, we always work in partnership with our management teams. Our mission is to work with all our management teams to shape a new phase of growth for the company.
