Handelsblatt reports that the founders of AVM want to sell their company. AVM is one of the few German companies that was and still can survive against international competition on the German telecommunications market. Outside of Germany, however, AVM and its Fritz boxes are less well known.
The reason for the sale: The three founders and managing partners are approaching 70 and therefore want to separate from their company in 2023/24. That’s why the owners have been discussing the future of their company for a long time. They want to ensure AVM’s continued success.
The Handelsblatt claims to have learned from several people in financial circles that the founders have commissioned the investment bank Lincoln to prepare an auction process. Several private equity investors would look into AVM. Whether and when the sale will take place is currently unknown. In any case, the whole thing will probably take months. Lincoln declined to comment to Handelsblatt.
AVM will generate sales of 620 million euros in 2022. That is 9 percent more than in 2021. According to the Handelsblatt, financial experts estimate the profit at 80 to 90 million euros. For the sale, the value of AVM could be set at 750 million to 1 billion euros.
Fritzbox is everywhere
AVM started with screen text. In the 1990s, AVM became big with ISDN accessories. When DSL became common as Internet access, AVM quickly gained an absolutely dominant position on the German market with its Fritzbox. Many providers also supply their customers with a Fritzbox as an access device as part of the internet contract.
For a long time, AVM has not only been represented on the market with the Fritzbox and repeaters and powerline, but also offers smart home accessories: smart thermostats, adapter plugs and smart lights. The Fritzbox serves as a smart home center.