Goldman Sachs and Hg Secure EU Nod for Trackunit Stake, Eyeing Construction Tech Growth

The European Commission has greenlit Goldman Sachs and Hg Pooled Management’s bid to acquire a controlling stake in Trackunit, a leading provider of IoT and SaaS solutions for the construction industry. The approval, granted under a streamlined review process, paves the way for the transaction’s closure in early summer 2025. This deal underscores a growing investor focus on construction technology, where data-driven platforms are transforming efficiency in a traditionally slow-to-digitize sector.

The Deal: A Strategic Reinvestment in Construction Tech

Trackunit, which connects over 3.5 million construction assets globally, offers predictive analytics and operational insights to reduce downtime and optimize resource use. Goldman Sachs previously owned the company from 2015 to 2021, during which Trackunit expanded its footprint. The new deal sees Goldman acquiring a majority stake (just over 50%) while Hg reinvests to retain a minority position. HgCapital Trust (HgT), listed on the London Stock Exchange, values its remaining exposure at £32.3 million—1.3% of its pro-forma £2.5 billion net asset value—after realizing £21.1 million from the transaction.

The valuation reflects Trackunit’s growth potential: its 2024 EBITDA of £53 million (DKK 374 million) underpins an EV/EBITDA multiple of 26.7x, signaling investor confidence in its AI-driven platform. This premium valuation highlights the sector’s shift toward data-centric solutions, where companies like Trackunit are positioned to capitalize on the $200 billion global construction tech market, projected to grow at 11% CAGR through 2030.

Regulatory Smooth Sailing

The EU’s simplified merger review for Case M.11923 reflects minimal competition concerns. Goldman Sachs and Hg, both financial investors without overlapping operational activities, face no antitrust hurdles. The Commission’s fast-tracked approval—finalized within weeks of the April 2 notification—aligns with its focus on prioritizing deals with no material market impact. This swift process reduces execution risk, ensuring the transaction can close as planned by summer.

Why This Matters for Investors

Trackunit’s platform is a mission-critical tool for construction firms aiming to cut costs and improve safety. Its IoT-enabled asset tracking and predictive maintenance capabilities reduce equipment downtime by up to 30%, per company data. With construction firms increasingly adopting digital tools to meet sustainability targets and labor shortages, Trackunit’s SaaS model—recurring revenue from 3.5 million connected assets—offers high margin scalability.

Goldman Sachs’ involvement adds credibility. The firm’s global network and track record in scaling tech platforms (e.g., its prior ownership of Trackunit) could accelerate international expansion. Meanwhile, Hg’s continued stake ensures operational continuity, as the private equity firm has deepened its expertise in software and services over the past decade.

Risks and Opportunities

The high EV/EBITDA multiple (26.7x) raises questions about valuation sustainability. Trackunit must sustain aggressive growth to justify its price tag. However, the construction sector’s digitization gap—only 20% of firms use advanced analytics—presents a vast addressable market. Competitors like Samsara and Trimble face challenges in penetrating niche construction segments, where Trackunit’s specialized solutions hold an edge.

Conclusion: A Pivotal Bet on Construction’s Digital Future

Goldman Sachs and Hg’s Trackunit stake represents a shrewd investment in an underpenetrated sector. With €53.4 million in HgT’s valuation uplift and a regulatory path cleared, the deal positions Trackunit to dominate construction IoT. Its 3.5 million connected assets and AI capabilities are not just assets—they’re indicators of a platform primed for exponential growth. For investors, this is a bet on a tectonic shift in an industry ripe for disruption, backed by a proven partnership of financial giants. In a market hungry for high-margin SaaS plays, Trackunit’s valuation may yet prove conservative.

The construction industry’s digital transformation is no longer optional—it’s essential. And with Goldman Sachs and Hg’s backing, Trackunit is poised to lead the charge.