Silicon Valley's HTEC acquires CertiCon, deal brokered by KPMG

Silicon Valley-based global technology company HTEC has acquired CertiCon, a leading Czech hi-tech firm specializing in the development of advanced digital solutions for healthcare, industrial manufacturing, and automotive. A KPMG team led by Partner Igor Mesenský acted as exclusive transaction, legal, and tax advisor to the sellers.

HTEC acquired a 100% stake in the SynergyCon group, which includes CertiCon and its subsidiaries in the Czech Republic and Slovakia. The entire group employs more than 380 experts, mainly software architects, developers, testers, and system engineers working in Prague, Pilsen, Pardubice, Olomouc, Ostrava, Žilina, and Liptovský Mikuláš.

CertiCon’s experts will join the HTEC team, which already numbers more than 2,500 specialists. Together, they will help global companies solve complex engineering challenges, increase efficiency, reduce risks, and accelerate product launches.

“We are excited to join forces with HTEC. The company’s vision and values are very much aligned with CertiCon’s, and we see this partnership as a unique opportunity for our team to create an even greater impact, further develop their skills, and contribute to a global technology leader. We also believe our clients will benefit from expanded capabilities and services as a result of this collaboration. For some time, we have been seeking the right partner to help propel the CertiCon story forward, and in HTEC, we are confident we have found the perfect match,” said Prof. Vladimir Marik, the founder of CertiCon and its former majority shareholder and chairperson of its board.

"The entry of a strategic investor like HTEC takes CertiCon to the next level. We chose HTEC from among many interested parties because it is one of the most important players in our industry. At the same time, it is still dynamic, has a clear vision and sufficient resources for further development," said Karel Kraus, CertiCon's second founder and its former minority owner.

“I am thrilled to welcome the CertiCon team on board. The company's unique culture, founded on applied research and strong collaborations with universities, represents a unique foundation to expand new opportunities to top talent in the Czech Republic and Slovakia. We are also excited to expand our portfolio in medical devices, industrial production, and automotive, areas of particular growth in which we can support our clients in the navigation of new technology development and the impact of AI in such highly regulated industries,” said Aleksandar Cabrilo, co-founder and CEO of HTEC.

The acquisition was supported by the European Bank for Reconstruction and Development, which has long assisted HTEC in its international expansion. The bank is thus supporting the growth of the technology sector and digitalisation in Central and Eastern Europe.

"Transactions in the technology sector were the most numerous on the Czech corporate market last year. We expect a lot of activity in this sector this year as well, as evidenced by the sale of CertiCon. This could also be another harbinger of a gradual return of foreign investors to Central Europe, which they had previously avoided due to the war in Ukraine," said KPMG Partner Igor Mesenský, in charge of mergers and acquisitions, whose team assisted the sellers.

"Technology companies usually attract more potential buyers from around the world because they can easily deliver internationally. But again, they face stiff global competition, so they must be really good. Many people thought India would win the tech rivalry because they are cheaper and work around the clock. But the successes of both HTEC and CertiCon and their current merger show that Europe is not out of the game. In many cases, European companies have retained their advantage in the form of better know-how and higher quality services," added KPMG Senior Manager Petr Slabý, who managed the transaction.

"The work on this complex cross-border transaction perfectly demonstrates KPMG's strength in providing top-quality advisory services that effectively cover all aspects of the transaction, are built on knowledge of the relevant sector, and emphasise a commercial approach," concluded KPMG Legal Partner Jan Procházka, who with the support of KPMG Legal Associate Manager Jakub Kolda led the team providing legal services to the sellers.