Last week, INDUS signed another acquisition, meeting market expectations of one additional deal before the end of the year. In detail:

PRO VIDEO is to strengthen Engineering from 2026 onwards. 80% of shares in the leading supplier of professional media solutions for audiovisual large-scale projects in Germany with an annual revenue of about € 24m were signed for now.

Closing and consolidation may be expected to follow upon receiving regulatory approval from the German Federal Cartel Office. Mind you, this approval process has two phases, with phase two unlikely to apply in this case and being conditional on concerns raised in phase one. We expect PRO VIDEO contributions from Q2 2026 onwards.

Taking a closer look at PRO VIDEO, the company specializes in providing safe and complex communication rooms for companies (i.e. Microsoft, BASF, Bertelsmann), government-related entities and educational facilities, such as universities. Although information revealed so far is limited, this target is likely a particularly attractive addition to INDUS, due to high margins implied by its high revenue/FTE ratio, typically low maintenance CAPEX associated with commonly asset-light structures in the conference room solutions markets, low overlap with the residual engineering portfolio and possible company-internal use cases which should allow for efficiency gains and cross selling opportunities. Market research indicates that conference room solutions should grow at a CAGR of more than 10% until 2032, vastly outpacing most other media niche markets.

Expected PRO VIDEO contributions to INDUS in FY26e looks set to be € 16-18m in revenue with an EBITDA margin of around 15% (eNuW), assuming consolidation from Q2 2026 onwards. With this, the acquisition does not only look strategically sensible but also value accretive, in our view.

Spending spree to last. Next year, INDUS plans to spend up to € 100m (eNuW), which would be in line with the company’s spending targets announced at its CMD last year. Mind you, INDUS plans to spend a total of € 500m until the end of 2030 on M&A. With an average acquisition multiple of 7-7.5x EV/EBITA, the company could add at least € 70m of EBITA during the next five years (vs FY24).

Looking ahead, we maintain our FY25e revenue estimate of € 1.74bn and raise our top-line assumptions for FY26e to 1.85bn, leading to an increased PT of € 34.5 (old: € 34) , based on FCFY26e. At the same time, we reiterate our BUY rating.