No M&A Without A Matching IT Concept

What challenges do M&A projects have in terms of IT?

Continental AG initiated a spin-off to allow Vitesco Technologies to focus entirely on the transition to electromobility. However, Vitesco Technologies faced a major deadline challenge to rapidly reorganize its contractual and technical IT assets to ensure independence from the former parent company. This meant sifting and evaluating a long list of manufacturer and supplier contracts. Unable to accomplish this alone in conjunction with its day-to-day business, Vitesco needed an experienced external partner to support the conversion.

Topics included:

• Ensuring IT operations were functioning and in compliance with the contract as of the legal separation date (Day-1)
• Maintaining visibility into potential IT impacts of the mergers & acquisitions transaction
• Uncovering potential for cost optimization through contract adjustments
• Ensuring vendor compliance
• Ensuring DSGVO compliance
• Drawing the Transitional Services Agreement (TSA) with the parent company
• Providing professional external partner project management, including regular spin-off status reporting

The solution if mergers and acquisitions are to succeed on the IT side as well

SoftwareOne offers its customers a comprehensive service set with a unique M&A methodology for M&A scenarios of all kinds, including spin-offs such as Vitesco Technologies. In addition to the professional identification and evaluation of all Vitesco Technologies IT assets, SoftwareOne experts assumed risk management oversight and calculated legal implications and financial scope.

The Transitional Service Agreement (TSA) ensured a regulated transition period in IT operations, including all the parent company's services that Vitesco Technologies will continue to access after the spin-off. Due to the complexity of corporate IT, it is often not possible after an IPO to be fully capable of acting independently on "Day 1". However, to ensure the continuing performance of Vitesco Technologies' business operations, the TSA stipulated specific ongoing support from the former parent company.

After verification of all the required software manufacturers, several hundred manufacturer agreements were separated. These included software, software-related services, and hardware agreements that formed the basis for negotiating new contracts. Remaining agreements could be handled via the Transitional Service Agreement. With SoftwareOne’s M&A support and help in contract and license management, Vitesco Technologies ensured that additional required licenses were identified, procured, and transferred. Vitesco also adjusted its contracts appropriately and secured urgently needed vendor and DSGVO compliance.

Helped by SoftwareOne's in-depth expertise and negotiation experience, Vitesco’s previously developed vendor and contract strategies were protected.

All benefits at a glance

• Professional project management: business continuity successfully implemented on the day of legal separation
• IT contract & software license compliance ensured
• DSGVO compliance ensured
• IT contract & licensing risk management process established across the enterprise
• Transparency: IT asset data, IT requirements, and a detailed renewal plan documented in a reporting system
• SAM tool "ServiceNow SAMPro" implemented for a detailed overview of the entire software inventory