Empowering investment decisions: SIG’s role in Parcom’s acquisition of Robin Radar
Introduction
Parcom is a Dutch investment firm focused on mid-market buy-outs, often in partnership with founders and entrepreneurs. With a team of just under 30 people based in Amsterdam, Parcom manages investments that collectively employ around 60,000 people and with €2 billion assets under management.
For one of their most recent investments, Parcom turned to SIG to ensure the software aspects were sound as a basis for further growth across various end markets and geographies.
The challenge: Tight deadlines, a competitive process, and a crucial need to answer, ‘what are the key IT risks?’
Parcom identified Robin Radar, a global leader in radar systems designed to detect and classify birds and drones, as a compelling investment opportunity. Robin Radar has shown impressive growth in recent years on the back of proliferation of bird strikes and drone threats. As part of its due diligence, Parcom identified several topics to be investigated:
- Open source and IP exposure: Potential risks associated with open-source software and intellectual property needed thorough evaluation.
- Software maintainability: The robustness and future maintainability of Robin Radar’s software were crucial for ongoing development and scaling.
- Security: Given the sensitive nature of Robin Radar’s clients’ software security is pivotal.
Collaboration with Software Improvement Group (SIG)
To address these questions, Parcom turned to Software Improvement Group (SIG), leveraging their expertise in software due diligence. Norman Bremer, partner at Parcom, recounts the urgency and complexity of the situation:
SIG conducted a thorough analysis focusing on identifying any serious exposure related to open source and IP that could jeopardize the competitive edge of Robin Radar, evaluating the architecture and robustness of the software to ensure it could support future growth, and ensuring the software met the stringent security requirements of Robin Radar’s high-profile clients.
The outcome
The collaboration between Parcom, the advisers of Parcom, SIG, and Robin Radar’s management was pivotal. SIG’s transparent and secure approach enabled a smooth and effective due diligence process.
The results were important:
- Open source and IP exposure
- Risk identification: SIG conducted a thorough open-source scan of the IP, identifying any exposure that could jeopardize the competitive elements of the business. This provided Parcom with the confidence to proceed and a clear view of what to expect once they had Robin Radar in their portfolio.
- Risk identification: SIG conducted a thorough open-source scan of the IP, identifying any exposure that could jeopardize the competitive elements of the business. This provided Parcom with the confidence to proceed and a clear view of what to expect once they had Robin Radar in their portfolio.
- Maintainability
- Actionable insights: SIG evaluated the architecture and robustness of Robin Radar’s software, ensuring it could support ongoing development and scaling.
- Actionable insights: SIG evaluated the architecture and robustness of Robin Radar’s software, ensuring it could support ongoing development and scaling.
- Security
- Security Assessment: SIG analyzed the actual security level of the software and enabled the team to meet the stringent security requirements of Robin Radar’s high-profile clients, including airports, defense ministries, and governments.
Buy, grow, and sell with confidence
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