5CS Capital Partners has sold Databalance to Kester Capital

Databalance

Databalance is a Dutch Managed IT solutions provider and trusted strategic partner to upper mid-market and lower enterprise customers. The company provides an end-to-end, full-stack offering across cloud & infrastructure, hyperscaler cloud, modern workplace, security and data & AI, supporting business-critical IT environments through a highly integrated, standardized, modular and automation-led delivery model. Databalance focuses primarily on customers with 250 to 3,000 seats, an attractive and underserved market segment characterized by structurally increasing IT complexity, growing security and regulatory requirements and a persistent shortage of specialist IT talent. Through its broad capabilities and close customer engagement, Databalance is often positioned as the primary IT partner to its customers, benefiting from long-standing relationships, high retention and significant cross- and upsell opportunities.

Since 2020, 5CS Capital Partners and Databalance’s management team have purpose-built the platform through a combination of strong organic development and six targeted acquisitions. In contrast to a federated buy-and-build model, Databalance has pursued a full-integration approach under its “one team, one company” philosophy. This has created a harmonized operating model, unified systems backbone and scalable delivery platform while maintaining high levels of customer proximity and service quality.

The Deal

Lincoln International acted as the exclusive financial advisor to 5CS Capital Partners and the other shareholders of Databalance in connection with Kester Capital’s investment in the company. Kester emerged as the preferred partner based on its focused experience in technology and tech-enabled services, its collaborative approach to partnering with management teams and its ambition to support Databalance’s continued growth. Kester has identified Databalance as a differentiated Managed IT platform and intends to support the management team in accelerating the company’s development, both organically and through further strategic acquisitions.

Under Kester’s ownership, Databalance plans to build on its strong position in the Dutch market; further scale its security, sovereign cloud and data & AI capabilities; deepen its relationships with existing customers; and continue its disciplined buy-and-build strategy. Financial terms of the transaction were not disclosed.

Our Perspective

Marvin Maerz, Lincoln International Managing Director who led the transaction, commented, “Databalance is a standout Managed IT platform. 5CS and management have built a highly differentiated business by combining broad, mission-critical capabilities with a genuine full-integration model, creating one scalable organization with a consistent customer proposition and deep, long-standing customer relationships. Kester’s sector focus, growth orientation and collaborative partnership approach make it an excellent fit for Nordi and the wider management team as Databalance enters its next phase of growth. We are proud to have supported 5CS and the shareholders through a cross-border Lincoln team combining deep Managed Services expertise with strong local market access. This transaction further demonstrates Lincoln’s momentum in European IT Services and, in particular, the Managed Services segment.”

5CS Capital Partners

5CS Capital Partners is an independent and hands-on Dutch investor that supports management teams and business owners in realizing their growth ambitions within the Dutch SME market. The firm combines capital with operational and strategic expertise and has supported Databalance’s development since its initial investment in 2020.

Kester Capital

Kester Capital is a sector-focused private equity investor specializing in technology and life sciences. The firm partners with ambitious management teams to scale high-potential businesses and achieve category leadership, with a particular focus on software, data & information services and tech-enabled services. For more information, please visit www.kestercapital.com.

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