KKR & Co. Inc.
01/16/2025 | Press release | Distributed by Public on 01/16/2025 02:36
January 16, 2025 | KKR Invests in smaXtec to Accelerate Global Growth
Investment to Support Dairy Industry with Innovative Technology and Global Expansion
London, UK & Graz, Austria - 16 January 2025 - smaXtec, a leading provider of agri-tech for the global dairy industry, today announced a growth investment led by global investment firm, KKR, alongside technology investor Highland Europe ("Highland"). Existing shareholder Sophora Unternehmerkapital ("Sophora") retained a minority stake in the business. Financial terms of the transaction were not disclosed.
smaXtec is a leading monitoring platform that transforms dairy farming by enhancing efficiency and promoting animal health through its proprietary technology. The platform enables early disease detection, monitors fertility with heat detection, and reduces birth-related complications, all contributing to improved cow welfare and farm productivity.
At the heart of smaXtec's innovation is the in-vivo bolus, a proprietary sensor placed inside a cow's stomach. This sensor provides real-time, accurate data, seamlessly integrated with a cloud-based, AI-powered analytics platform. Farmers can access actionable insights and alerts via remote monitoring, empowering them to make timely and informed decisions. Founded in 2009 in Graz, Austria, smaXtec has established a global presence, serving dairy farmers across Europe, North America, and Australia & New Zealand.
KKR's investment is to fuel smaXtec's product innovation and accelerate its international growth as the global dairy industry increasingly adopts digital tools to improve animal health. smaXtec expects to benefit from KKR's operational expertise, leveraging the firm's platform to scale as a leader in agricultural technology. Additionally, smaXtec will access KKR's extensive network of industry professionals, particularly in agriculture and technology, to strengthen its position as a pioneer in dairy farming solutions.
Stefan Scherer, CEO of smaXtec said: "smaXtec has emerged as the leading dairy cow health management system, revolutionizing the industry. Our system empowers thousands of farmers worldwide to achieve a true triple win: enhanced animal welfare, reduced greenhouse gas emissions, and increased earnings. I am thrilled that KKR is able to ensure and accelerate our global growth, which has consistently doubled over the past five years. smaXtec consists of a competent and committed team that will achieve a lot in the future. I would like to thank them for our cooperation and look forward to the future."
Marta Szczerba, Director in European Tech Growth at KKR, said: "smaXtec's technology has emerged as a disruptive force in the dairy industry, enabling farmers to significantly increase the efficiency of their operations. With a deeply engaged user base, high pace of product innovation and dedication to supporting its customers, smaXtec is well-positioned to continue to drive digitalization of the dairy sector globally. We are excited to support the next chapter of the company's growth story."
David Blyghton, General Partner at Highland Europe, added: "By providing real-time, actionable insights into herd health, smaXtec is empowering farmers across the globe to improve animal welfare, enhance productivity and drive operational sustainability. smaXtec's vision and product leadership in AI-powered dairy health monitoring is driving rapid revenue growth and global customer adoption - we're delighted to be part of the journey."
Benjamin Hubner, Managing Partner of Sophora, said: "We are excited to continue our partnership with smaXtec and join forces with KKR and Highland in the next phase of smaXtec's development. Over the past two years, smaXtec has consistently demonstrated its ability to drive innovation and create significant value for the dairy industry. By reinvesting, we reaffirm our confidence in smaXtec's disruptive technology and its potential to further transform the market globally."
Today's announcement of KKR and Highland's investment in smaXtec is also a success story for the Styrian regional start-up ecosystem. From university spin-off to global success - smaXtec and Styria prove what a positive economic ecosystem can achieve.
KKR is making the investment in smaXtec primarily through its Next Generation Technology Growth Fund III, a fund dedicated to growth equity investment opportunities in the technology space. KKR has established a proven track record of supporting technology-focused growth companies, having invested over $21.6 billion in related investments since 2014 and built a dedicated global team of more than 35 investment professionals with deep technology growth equity expertise.
William Blair & Company is acting as exclusive financial advisor to smaXtec. The transaction is still subject to the approval of the relevant antitrust authorities.
About smaXtec
smaXtec provides dairy farmers with the most advanced health monitoring system, designed to prevent diseases in cows, boost milk yields, improve animal welfare, and reduce methane emissions in milk production. By integrating cutting-edge AI technology, such as the TruAdvice™ system, smaXtec detects potential diseases long before they become clinical. This enables farmers to prevent most diseases altogether by applying milder and alternative treatments. The combination of accurate data and intelligent insights helps farmers around the world to optimize their operations, improve the efficiency of daily tasks and reduce antibiotic use. SMAXTEC is committed to enhancing the stability, sustainability and profitability of dairy farming globally. For more information, visit smaXtec.com.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at www.globalatlantic.com.
About Highland Europe
Highland Europe invests in exceptional growth-stage technology and consumer companies. Formally launched in 2012, Highland Europe has raised over €2.75 billion and has invested in companies such as Adjust, AMCS, Camunda, ContentSquare, Deepki, Descartes Underwriting, GetYourGuide, Featurespace, Finbourne, Huel, ME+EM, Nexthink, Nothing, Oritain, PVcase, SoSafe, Supermetrics and Zwift. Highland's collective history of investments across the US, Europe and China includes 45+ IPOs, 150+ M&A exits and 40 billion-dollar-plus companies.
About Sophora Unternehmerkapital
Sophora Unternehmerkapital, based in Munich, is an independent and owner-managed investment company with a focus on medium-sized companies in Germany, Austria and Switzerland. Sophora consists of an interdisciplinary team of entrepreneurs with many years of experience in the investment business and as founders and Managing Directors of companies. As a value-creating partner of entrepreneurs and management teams of medium-sized companies, Sophora provides strategic and operational know-how as well as a comprehensive network of experts and flexible capital in order to jointly discover and develop potentials. For additional information about Sophora, please visit Sophora's website at www.sophora.de/en.
smaXtec
smaXtec animal care GmbH
Stefanie Murauer
+43 664 88440916
KKR
FGS Global
Alastair Elwen / Jack Shelley
+44 20 7251 3801
Sophora Unternehmerkapital
Sophora Unternehmerkapital GmbH
Melaine Louis
[email protected]