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Gaussin

CR
Bloomberg   ALGAU FP
Engineering-Heavy Constr.  /  France  Web Site   |   Investors Relation
Pioneer in green-powered closed space mobility but troubled by operational scares
Target
Upside 237%
Price (€) 0.25
Market Cap (€M) 11.0
Perf. 1W: 0.20%
Perf. 1M: -33.6%
Perf. 3M: -52.4%
Perf Ytd: -53.0%
10 day relative perf. to stoxx600: -1.24%
20 day relative perf. to stoxx600: -23.1%
M&A /Corp. Action04/05/2023

An opportunistic addition but integration will be key

Gaussin in partnership with Macnica has acquired Navya, the Lyon-based start-up that develops autonomous shuttles. This is an opportunistic transaction in two ways. First, Gaussin has taken over only the assets of the business, and second, this acquisition offers growth avenues for both companies.


Fact

Gaussin and Macnica acquire the assets of Navya for €1.4m

Analysis

Gaussin and Macnica have together acquired 100% of Navya, with Gaussin holding 51% and Macnica the remaining 49%. The consortium paid €1.4m for Navya and has agreed to a €25m financing plan over the next three years. Of this financing plan, €15m is already secured with one-third coming from Gaussin for its 51%. In addition, the group will also take on 149 of Navya’s 209 employees, while the remainder will be offered redeployment to Gaussin’s production site in Saint-Vallier. The new entity will be headed by Mr. Jean-Claude Bailly, currently the Executive Head of Europe at Gaussin SA.

A symbiotic transaction for both parties

Navya has made a name for itself in autonomous driving and battery technology. The company can already deliver Level 4 automation driving software, which is a step-up when compared to Gaussin’s own technology and can help accelerate Gaussin’s off-road vehicle development. Moreover, through Navya, Gaussin can also enter into the shuttle business without having to outlay cash that would have been needed to develop a novel platform. Furthermore, Navya can benefit from Gaussin’s reach and market exposure (geographical as well as end-markets) to expand its own business. So, we believe that this addition to Gaussin will benefit both companies.

About Macnica

Macnica, is a Japanese listed entity involved in semiconductors, cybersecurity and IoT. Macnica is and also has been a customer for Navya’s shuttles.


Impact

Our estimates are under review as Navya will be consolidated in the group accounts. Additionally, there will also be some adjustments to Gaussin’s numbers excluding Navya. Lastly, the funding requirements for the group remain crucial and, with the Amazon order (329 trucks) ramp-up, we believe that funds will need to be raised via equity or debt or both.


Updates

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Greening up transport in closed spaces

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