Sagemcom

Overview

Sagemcom is a leading global provider of high-end connected terminals and software to the communication, entertainment and utilities sectors. It designs and manufactures approximately 35 million terminals each year and supplies many of the world’s leading operators in over 120 countries across Europe, North America, Latin America and Asia. Sagemcom is organised across three complementary product areas: (i) Energy & Telecoms, (ii) Broadband Solutions, and (iii) Audio & Visual Solutions. The company is headquartered in France and has c.6,800 employees working in more than 40 countries across five continents.

Charterhouse invested in Sagemcom in September 2016, having formed a strong relationship with the management team over a two-year period. Charterhouse was a highly credible partner for management, with a deep understanding of the company’s growth opportunities as a result of our prior investments in TDF, a French telecoms towers operator, and ista, a German headquartered sub-metering specialist.

Sagemcom is well-diversified and has a leading position in its core markets. The high-end, fully customised devices that Sagemcom designs and manufactures have resulted in long-term relationships with its blue-chip customers. The business’ innovation-led approach and proprietary software provides significant potential for development in emerging high-growth segments including smart metering devices, all-in-one entertainment systems, ‘smart home’ connected devices and increased connectivity as part of the ‘internet of things’.

How innovation connected Sagemcom to growth

Innovation has been central to Sagemcom's success and the company has remained at the forefront of newly adopted technical standards. In its Broadband and Audio & Visual solutions divisions Sagemcom has benefitted from demand for faster broadband and the emergence of 4K UHD entertainment through the development of feature-rich devices that support the latest high-speed connectivity standards.  Charterhouse has supported the business’ investment in personnel and R&D, helping Sagemcom maintain its market leading position as new technological standards are introduced.

Sagemcom has grown rapidly in the smart metering segment, which has benefitted from a European-wide roll-out of electricity smart meters. Charterhouse helped the business to access the gas smart metering market through an acquisition in Italy and aided in the development of its product offering in water metering. Through its international footprint, Sagemcom is now well-placed to benefit as smart utilities monitoring technologies are introduced in other geographies. 

A key focus of the business’ growth plan was the development of proprietary software for its products. By investing in its own software platforms, Sagemcom has been able to integrate a broader range of features and capabilities into its devices, maintaining its leading edge in the market.

The combination of these investments means Sagemcom is well-positioned for future growth in an increasingly connected world. The business’ track record of innovation in connected devices, within both hardware and software, will allow it to benefit from increasing integration and connectivity as part of the ‘internet of things’, the emergence of decentralised production and management of electricity (e.g. electric vehicles) and the emergence of ‘smart’ cities.

Under Charterhouse’s ownership, Sagemcom has repositioned itself from a provider of set-top-boxes and broadband terminals into a diverse global connected solutions player with a number of exciting high-growth opportunities ahead.  This transformation has led to the company’s earnings doubling organically since 2016. In recognition of the substantial value created to date, as well as the exciting growth prospects ahead, Charterhouse effected a partial realisation of its investment in Sagemcom in the summer of 2018, retaining a controlling interest in the business alongside its co-investors.  

Sagemcom's growth story is a strong example of Charterhouse's capabilities in implementing transformational strategies at high-quality growth companies in partnership with leading management teams.