High interest rates have prompted Bechtle to take a novel approach to raising financing, the pan-European reseller said as it unveiled a fresh M&A warchest.
The Germany-based giant announced this morning that it has successfully placed convertible bonds with a total nominal value of €300m and a seven-year term.
Having traditionally financed acquisitions via loan agreements, Bechtle said the high interest rate environment has made financing via convertible bonds “attractive for the first time”.
It will use the new kitty to finance future growth in Germany and abroad, including through acquisitions.
On an M&A roll
The news will be met with interest from peers and potential acquisition targets in the UK, where Bechtle has made it clear it wants to be a top 10 player. It backed up that rhetoric by acquiring ACS in November 2022 and Tangible Benefit in March 2023.
Some of the extra liquidity may also be pumped into expanding “promising business areas” such as AI, Bechtle added.
All in, Bechtle – whose revenues topped €6bn in 2022 – has acquired 113 companies across Europe, including seven in the UK.
“For Bechtle as a listed company, the successful issue of the convertible bonds is an important step towards securing a high degree of strategic financial flexibility, even in times of high interest rates,” said Dr Thomas Olemotz, Chairman of the Executive Board of Bechtle AG (pictured, top).
The convertible bonds were oversubscribed by multiple times, Bechtle stressed.