Mubadala backs German energy services firm Techem in $7.8bn deal
Mubadala Investment Company has joined a high-profile consortium alongside Partners Group, GIC, and TPG Rise Climate to acquire Techem, a leading provider of digitally enabled solutions for the real estate sector, in a transaction valued at approximately $7.8 billion.
The Abu Dhabi-based investment company views the acquisition as a strategic move to support the decarbonisation of Europe's real estate sector, which accounts for roughly 40% of global CO2 emissions. Techem, founded in 1952 and headquartered in Eschborn, Germany, serves over 440,000 customers across 18 countries and manages more than 13 million dwellings.
"The decarbonisation of the real estate sector continues to be a global priority for better and more sustainable living," said Abdulla Mohamed Shadid, Head of Energy and Sustainability at Mubadala's Private Equity Platform. "As a trusted and leading sub-metering services provider with a digital edge, Techem is well positioned to continue leading this transition, improving the energy management of buildings through better efficiency and consumption."
The company's core sub-metering service delivers significant environmental and economic benefits through fair cost allocation, helping to reduce energy consumption and emissions. With approximately 62 million devices currently installed worldwide, Techem's state-of-the-art technology is considered critical to advancing long-term decarbonisation efforts.
Partners Group's Infrastructure business will hold a controlling stake in Techem following the acquisition, taking over from the previous consortium that included Partners Group's Private Equity business, La Caisse, and Ontario Teachers' Pension Plan, which acquired the company in 2018.
Boon Chin Hau, Chief Investment Officer for Infrastructure at GIC, highlighted the strategic importance of the investment: "Techem is at the forefront of energy services and is uniquely positioned to drive energy efficiency within the real estate sector. Our partnership with Partners Group, TPG, Mubadala, and Techem's management team will accelerate the business's strategy, unlocking future growth."
Ed Beckley, a London-based Managing Partner of TPG Rise Climate, added: "Techem's solutions are highly differentiated, and it is poised to continue to play a leading role in Europe's decarbonisation story. With the execution capabilities of this exceptional management team, we look forward to supporting Techem's business for the benefit of the property managers, owners, and tenants on their platform."
The new ownership group plans to implement a value creation strategy focused on strengthening Techem's position as a digital-first provider of sub-metering solutions across Europe. This includes further digitalising operations, adding complementary offerings such as smart meters, and enabling additional digital services to improve building efficiency.
Matthias Hartmann, Techem's Chief Executive Officer, welcomed the new consortium: "The new ownership consortium is ideal for Techem because it ensures continuity whilst also providing fresh impulses for the implementation of our strategy."
