Vilvoorde, Mont-Saint-Guibert, Windhof (Luxemburg), Paris, – Prodware Group has invested significantly in WESTPOLE Benelux, supplier of IT services and hybrid solutions for digital transformation. WESTPOLE carried out a capital increase of €4.5 million, which was entirely financed by Prodware Group. In addition, the parent company made an additional cash injection of € 2.4 million to finance the growth of the subsidiary. WESTPOLE fully met expectations, with a 25% increase in turnover, from €40 million in 2022 to €52 million in 2023, and the return to profitability.
In March 2023, WESTPOLE Benelux was acquired by the French IT company Prodware Group. Prodware Group confirmed its intention to further grow the Belgian IT supplier. The group is now investing a significant amount in WESTPOLE Benelux. This concerns a total amount of 6.9 million euros in cash, of which 4.5 million euros via a capital increase.
Boost growth again
WESTPOLE Benelux’s turnover increased from 40 to 52 million euros in 2023 and the Belgian company has been profitable again since the last quarter of 2023. With a turnover of 14.3 million euros, WESTPOLE did much better in the first quarter of 2024 than in the same period last year (10.5 million euros in turnover). This revenue growth is mainly the result of growth in the Managed Services, Staffing & Sourcing departments and the collaboration with tech partners and cybersecurity specialist partners such as IBM, Broadcomm/VMWare, Dell and Commvault. The company expects a similar growth curve for 2024.
Alain Conrard, CEO of the Prodware Group, explains: ‘We immediately saw the synergies between Prodware and WESTPOLE Benelux. That is why we took over the company. However, in order for this complementarity to take full advantage, investments had to be made to make growth possible. We are happy that our joint efforts have paid off. WESTPOLE Benelux has the wind in its sails and is gradually getting back up to cruising speed. That suggests the very best for the future.’
Bertrand Launay, Executive Vice-President of Prodware Group and General Manager WESTPOLE Benelux: ‘During the takeover, we found a motivated and experienced team at WESTPOLE. We had a good restart, thanks to our fantastic team and our loyal partners and customers, and we can now hope that we can continue on this path and continue for many years to come. We are proud that we have been able to maintain the trust of everyone involved and I think I can say that we were and are worthy of that trust.’
The Prodware Group’s results
Prodware Group achieved a turnover of €380.6 million in 2023, compared to €188.3 million in 2022, i.e. a doubling, partly due to the acquisitions of WESTPOLE and the Dutch company Protinus. Prodware Group itself grew by 5.1%, driven by a solid business model that promotes recurring revenue. Prodware Group’s EBITDA amounted to €71.1 million, an increase of 36.6%. Partly thanks to the product mix of the acquired companies in the Benelux, the EBITDA margin reached 18.7% in 2023.