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Aareon
Digitalisation partner for the
property industry
Aareon is the leading provider of ERP software and digital solutions for the European property industry and its partners. We are using our user-friendly software solutions to digitalise the property industry, streamline and automate processes, support sustainable and energy-efficient action, and create networks for all of the parties involved in a specific process.
We are represented in nine European countries and serve more than 7,000 clients with around 12 million (residential) units under management.
At a glance: Aareon
countries
Aareon is headquartered in Mainz. In addition to the DACH region, Aareon has representative offices in Finland, France, UK, the Netherlands, Norway and Sweden.
clients
use Aareon’s software solutions and benefit from the digital transformation of their companies. They manage more than 12 million units.
employees
from different nationalities, cultures and age groups are the key to success. They have IT and housing industry competence, are innovative, committed and are always focused on the client.
Dynamic market development
The digital transformation process in the property industry has gained momentum in recent years, not least driven by the COVID-19 pandemic. More and more companies are recognising the manifold benefits that digitalisation has to offer when it comes to making their processes more efficient by networking market participants, increasing the quality of their services and moving into new markets. In line with this trend, the demand for software, as well as for corresponding services, has been rising steadily for years now.
The following market developments and trends are having a particularly positive impact on Aareon, as our pioneering work in the past allowed us to prepare for them:
Increasing importance of digital ecosystems
The acceptance and use of digital ecosystems have increased steadily in recent years. More and more companies are identifying opportunities and forward-looking business models through participation in ecosystems and platform solutions. For years now, Aareon has been offering the Aareon Smart World digital ecosystem, which is being expanded on an ongoing basis.
High demand for software-as-a-service (SaaS)
SaaS offers numerous advantages for users: it allows them to access systems and data wherever they are, allowing them to work remotely, removes the need to purchase and install software and offers attractive payment models. Aareon has been offering ERP systems and digital solutions as part of a SaaS model for many years now.
Increasing need for networking
The creation of networks linking property companies, their business partners and clients/tenants, as well as their buildings, creates considerable potential for process optimisation. This also opens up opportunities for more effective communication channels and innovative services. Aareon is networking market participants with the Aareon Smart World digital ecosystem.
Smart buildings and the Internet of Things
Smart buildings and the Internet of Things make a vast volume of data available for process automation. This creates considerable potential for the property industry, for example when it comes to optimising building maintenance. Aareon uses AI and has started marketing PrediMa for predictive maintenance.
New technologies
The use of new technologies such as AI, BI and big data will facilitate quantum leaps in process optimisation and the development of entirely new services. Examples include predictive maintenance, new forms of communication or the automation of management and administrative tasks. Aareon is taking these new technologies into account in its research and development activities.
Alf Tomalla
Managing Director Digital Solutions, Aareon Deutschland
“Aareon Smart World allows us to use various digital solutions to create networks linking property companies and their employees with clients, business partners, buildings and building technology. Among other things, this allows us to help ensure that properties can be managed much more effectively.”
Growth through expansion
The goal is to push Aareon's performance to establish it as a “Rule of 40” SaaS company by 2025. This means that the combined EBITDA margin and revenue growth rate are then to exceed 40 per cent in the long run. Adjusted EBITDA is also set to increase to around €155 million by 2025, including earnings of around €20 million contributed by the acquisitions already completed to date, plus positive effects of potential further acquisitions in the coming years.
In order to achieve our targets, we will be optimising the market launch of our products at Aareon and targeting new clients, in particular, whilst also making greater use of cross-selling and up-selling opportunities. At the same time, we will be striving to expand the range of value-added solution packages we offer our clients, to further develop the software-as-a-service business and become more efficient in implementing software.
We will be using M&A activities to tap into additional growth potential for Aareon. Throughout this process, we intend to not only secure the loyalty of our existing client base with an expanded range of products, but also to reach related client groups and target them with our established product portfolio. In addition, we are planning to develop new products for adjacent client groups.
Aareon took over six companies in the last financial year alone, including GAP-Group, wohnungshelden, Arthur Online, Tilt, Fixflo and Twinq, and we are determined to keep up the pace. To finance further acquisitions, we plan to extend the revolving credit facility by €100 million, bringing our credit line for acquisitions made by Aareon to a total of €350 million.
Torsten Rau
Managing Director Operations, Aareon Deutschland
“When it comes to developing and enhancing ERP systems and digital solutions, we pursue a collaborative approach working hand-in-hand with our clients. This allows us to ensure that our products offer the greatest possible benefits and are intuitive to use.”
A selection of new pioneering solutions
Aareon Wodis Yuneo
A new, forward-looking generation of ERP products was launched at the end of 2020, with Aareon Wodis Yuneo, which facilitates the use of new technologies such as business intelligence, AI, big data or robotics. Aareon received the “ERP System of 2021” award for this innovative ERP architecture.
Tobias 365
Tobias 365 is the new product generation of the Dutch ERP system Tobias AX. It allows Aareon Nederland to offer its clients a SaaS system with a state-of-the-art, intuitive user interface. Clients can use the latest version of Tobias 365 at any time, at any place, and using any device or browser.
Neela
Neela is an AI-based chatbot that Aareon developed specifically for the property industry. By way of example, it can communicate with tenants unassisted and provide answers to standard questions. Housing company employees are freed up by not having to answer frequently asked questions and therefore have more time for complex issues.
PrediMa
PrediMa is Aareon’s predictive maintenance solution. It promotes the achievement of environmental objectives by making buildings smart. The aim is to use Internet of Things technology to detect the first signs of damage to a property before it occurs and trigger preventive measures. Work orders containing a precise description of the assignment and details of the systems involved are sent to tradespeople and service partners automatically.
AiBATROS
AiBATROS is a software package that identifies the current conditions of individual building components, as well as their maintenance needs, calculates the energy requirements and proposes energy-efficient refurbishment measures. This helps property owners and operators to meet their CO2 objectives.
M&A deals
By conducting targeted company acquisitions, Aareon is accelerating its dynamic growth path.
