Client Story: Q.ANT GmbH

Q.ANT GmbH, based in Stuttgart, is a high-tech start-up that was founded in 2018 as part of the TRUMPF Group. Q.ANT is one of the pioneers in the development of photonic processors and is recognised as one of the world's leading providers in this field.

KPMG and KPMG Law* supported the company with the previous sole shareholder TRUMPF SE + Co KG as part of a financing round in which investors contributed a total of 68 million euros. The investment is one of the largest deep-tech financing rounds in Europe in the field of photonic processors and is intended to accelerate the market launch of Q.ANT's energy-efficient photonic processors for AI applications and high-performance data centres.

Further information on the transaction can be found at KPMG Law here.

A key concern of the new investors was to give the key management a central role in the future development of the young company. KPMG was therefore commissioned to develop a suitable management participation for the company and the investors.

Until now, management participation in the form of an actual equity stake was not possible in Germany without triggering considerable wage tax when shares were transferred. The non-cash benefit is subject to income tax at the moment of transfer. This is problematic, as the management usually only has shares at this point in time, but no liquid funds to cover the wage tax due ("dry income").

The Future Financing Act 2024 and the amendment of the statutory provision in Section 19a EStG allow taxation to be deferred to a later date under certain conditions if sufficient liquidity is available to cover the taxes due.

Based on these regulations, the project team implemented a suitable management participation for the client.

The KPMG team was honoured with the "M&A Transaction Advisory" award for its advice to Q.ANT GmbH at this year's M&A Award Night of the German Mergers & Acquisitions Association (BM&A). Together with TRUMPF, our client Q.ANT received the prize for the "Most Impactful Deal".