Pcentra: A Modaxo Acquisition Story
“I saw the opportunity to utilise Modaxo’s experience and global reach to expand into other regions” – Moti Maimon, CEO and Former Owner, Pcentra
When speaking with Pcentra CEO Moti Maimon, it quickly becomes clear that this is a leader who knows exactly what he wants. Having built a very impressive business within Israel, Moti has his sights set on expansion – and he has identified Modaxo as the company to help him achieve it.
Moti explains that his goal of achieving global expansion was fundamental to choosing Modaxo:
“We wanted to be part of a global company with expertise in, and focus on, public transport. I saw the opportunity to utilise Modaxo’s experience and global reach to expand into other cities and regions.”
“When approaching new customers, it is very important to have a good reputation. We felt that working with Modaxo businesses delivering proven solutions into other regions would help us to expand our business.”
Acquisition Process Concerns?
Moti describes a thorough and reassuring acquisition process:
“The acquisition process was transparent and efficient from the beginning. The way that Modaxo asks for information is clear and based on factual data. They arrived at a valuation and go/no-go decision very quickly. This was very important because in just a few weeks we knew there was a possibility to go forwards.”
“I understood from the discussions that we would retain our brand identity and be able to focus on growth without changing the company structure. So I was very comfortable with the process.”
Valuation and Negotiation
While valuation and negotiation can sometimes present obstacles in M&A, Moti and Pcentra found the process clear and collaborative:
“It was important to work with a company that is experienced in M&A. Modaxo is a good partner because the team very quickly understood the value of the business from their perspective. With all the information on the table it makes agreeing a number much easier.”
“The process was very transparent. I knew all the necessary information, and Modaxo had all that they needed for their side. When there are hidden parts, negotiation becomes complicated. But when both sides are comfortable with the information, it is easier to decide.”
“We have been allocated resources to support the integration – on an ongoing basis, not one-off. The financial management support is very important because Modaxo’s decentralised model grants businesses autonomy – but autonomy requires a way to understand the numbers, because this provides the control. So the financial side facilitates the autonomy.”
“Just a year in, we are already moving ahead in terms of expansion. We are starting to feel the potential of collaborating with other Modaxo businesses.”
And Moti is already finding – and delivering – value in relation to Modaxo’s global leaders network:
“It is very beneficial to meet leaders of companies from other sectors working with different customers, to see how they work. With Modaxo we benefit from others’ knowledge and experience. And it goes both ways: we also contribute a lot to our colleagues.”
With Pcentra quickly integrated and performing well, thoughts are already turning towards expansion.
“We can offer more products into Israel. We know that a lot of operators are interested in Modaxo products, and because of our position we can help this to happen. At the same time, I know we must continue to focus on innovation in order to continue to develop our solutions.”
“And we are already seeing opportunities for Pcentra to acquire businesses, which is very interesting. We have a good position in the Israeli market, so if we see a strong Israeli company, it makes sense to bring it in – especially if we can integrate the solutions to create greater value for customers.”
The Right Decision?
Are you happy to be part of Modaxo?
“Absolutely. I am happy with the decision and I know it was the right thing to do. Modaxo is the right home for Pcentra.”