SENNA

Buyout Firms Compete for Ayesa IT Division in Spain
By Senna Garcia

MADRID - Two major players are vying for control of the technology division of Spanish engineering firm Ayesa, as the closely-watched auction process enters its final stages.

Basque bank Kutxabank has joined forces with regional investment fund BBK and the Basque government to submit a binding offer of around €400 million for the Ayesa IT unit, which includes the former Ibermática business. They are competing against US private equity giant Blackstone, which is bidding through its Indian IT services subsidiary R Systems.

The sale process, run by advisers Houlihan Lokey and Arcano, values the Ayesa IT division at €400-500 million, according to people familiar with the matter. BBK, which owns a 57% stake in Kutxabank, had been one of four finalists in the auction launched by A&M Capital Europe after it decided to exit its investment in Ayesa.

Blackstone entered the fray through its 2022 acquisition of R Systems, which the buyout firm sees as a platform for expanding its technology services footprint in Europe. Another finalist, HIG Capital, dropped out of the process in recent weeks without submitting a binding bid.

The contest for Ayesa's technology arm highlights the appeal of Spain's IT services sector, which has seen increased M&A activity as large corporates and private equity seek to build scale and capabilities. Ayesa itself was formed in 2016 through the merger of engineering firms Sener and Ibermática.

"This is a strategically important asset that will allow the winner to gain a stronger foothold in the fast-growing Spanish IT services market," said one industry analyst, who asked not to be named. "Both Kutxabank/BBK and Blackstone see significant potential for growth and synergies."

The outcome of the auction is expected to be finalized in the coming weeks. Whichever party prevails, the deal will mark a milestone in the consolidation of Spain's fragmented IT services landscape.