Forterro has announced the acquisition of the German software company Orgadata AG. Orgadata is a significant organisation and possibly one of the largest that Forterro has yet acquired. The company operates across Europe and also has operations in the US. It has over 600 employees, mainly based in Germany, and over 7,000 customers.
Its main solution, Logikal, assists manufacturers of windows, doors, and curtain walls (fenestration) within the global aluminium/metal industry. Logikal enables firms to digitalise the manufacturing of windows, doors, and curtain walls at all levels. The solution integrates with several ERP solutions, including ERPlus, Proflex ERP, A + W Cantor, IDA, and ENBLAU. It seems likely that Forterro will invest in integrations to its solutions.
What is interesting about this acquisition is that the Founder and CEO of Orgadata, Bernd Hillbrands, initiated the process for this acquisition. He saw Forterro as having the experience to help the company drive growth. Hillbrands commented, “We see Forterro as a strong partner for the future, who shares our vision of driving digitalisation in the skilled trades and offering innovative solutions for the growing challenges of our customers.”
Having led the company for the last 25 years, this may also provide Hillbrands with an exit, if he wishes. Or a senior position within the Forterro leadership team. However, the press release does not indicate whether he will stay with the firm.
Forterro has confirmed that it will create a new division, Forterro Windows and Doors. This is a slight change in strategy, with the company creating a focused business on a specific manufacturing vertical.
Can Forterro propel growth at Orgadata?
Orgadata will bring a market leader into the Forterro group and a team that is experienced in selling to a specific vertical. With the addition of local Forterro ERP solutions, the new Forterro Windows and Doors will be able to cross-sell Forterro solutions. Especially once integrated into Logikal. Forterro will also be able to provide feet on the ground in more countries. As well as the technical expertise to help Logikal and its other solutions scale up in the cloud.
There may be some crossover with joint customers, but this is a significant addition to the Fortero ecosystem. Logikal is sold in more than 100 countries worldwide. Though it doesn’t appear on its website to have a formalised partner ecosystem. However, with over 20 language variations on its website, it will have a lot of experience in dealing with multilingual operations both within and outside Europe.
Marcus Pannier, Regional President at Forterro, commented, “With this acquisition, Forterro will not only expand our portfolio but also gain access to a new industry within our target market, further strengthening our position as a leading software provider for mid-sized industrial companies. Together with Orgadata, we will continue to drive digitalisation in the manufacturing sector and, in line with our Forterro mission ‘Powering the Businesses Powering the Future,’ support even more customers on their future paths.
“With a strong foundation of organic growth and strategic acquisitions over the last two years, Forterro continues its dynamic growth trajectory and is well-positioned to expand into new markets to achieve further success.”
Terms of the deal were not disclosed. However, it is expected to be completed in Q1 2025. Until the deal completes, the companies will operate independently.
Enterprise Times: What does this mean
This is a significant acquisition by Forterro and possibly its largest. It also raises some key questions about the direction of Forterro. Is it now looking to focus on a strong microvertical approach? If it combines its different solutions it can provide a complete business solution for organisations within the industries where Orgadata operates.
Also, Orgadata attends exhibitions worldwide, not just in Europe. It recently attended GlassBuild in Dallas, Texas, and Bau China in Shanghai. Will this signal a change in strategy from Forterro to go global with industry solutions rather than its historic focus on Europe? Once complete, the acquisition will also see Forterro grow from 13,000 customers to around 20,000 customers, a significant uplift.
