In June 2024, the Xovis AG took over the People Sensing business of HELLA Aglaia. As part of HELLA Aglaia, People Sensing had to be separated from the previous IT landscape and integrated into the corporate and IT infrastructure of the Xovis AG. valantic was commissioned to carry out the IT due diligence and implement the IT carve-out as part of an overall project management.
The company: Xovis AG
The Xovis AG is an international high-tech company based in Switzerland that specialises in loT 3D sensors and suitable software solutions for the precise, data protection-compliant counting of people and the optimisation of people flows (people counting). The products are used to optimise people flows and waiting times at airports, in retail, on public transport and in the smart building industry. The company was founded in 2008 and currently employs more than 200 people in Switzerland, Berlin and the USA. The head office is located in Zollikofen (Canton of Bern, Switzerland).
In June 2024, Xovis acquired the people sensing business of HELLA Aglaia, a Berlin-based subsidiary of automotive supplier FORVIA HELLA, as part of a partial sale. The division with 65 employees now operates as Xovis Germany GmbH based in Berlin and complements the Group’s portfolio with analysis solutions for automated passenger counting in public transport.
Migration of the entire IT from signing to closing in five months
Challenge
As part of HELLA Aglaia, People Sensing had to be separated from the previous IT environment and integrated into the corporate and IT infrastructure of the buyer, the Xovis AG. Due to the size of the FORVIA Group with around 115,000 employees, it was not only the coordination processes that proved to be challenging. Xovis’s goal was to migrate all relevant IT services within five months – from signing in December 2023 to closing on 31 May 2024 – so that People Sensing could operate independently of the ERP system, all other applications and all critical IT services of the former parent company on day one after closing.
Consulting approach
valantic was commissioned to carry out the IT due diligence and implement the IT carve-out as part of an overall project management. In addition to the implementation of consistent project governance in the first step, the existing IT landscape was analysed, a target and transition concept was developed and the actual transition of the relevant applications and data was carried out in a second phase.
Customer benefit & solution
Despite conducting an IT due diligence at short notice, valantic’s experts were able to comprehensively analyse all critical aspects. Thanks to the subsequent IT carve-out management, which included the definition, establishment and development of project management governance with the involvement of all stakeholders, the transition and carve-out were successfully monitored and controlled. This ultimately enabled the smooth integration of the systems and the transition to a joint IT architecture.
Denis Ranke
CFO, Xovis AG
”We are extremely satisfied with valantic's outstanding support during the IT carve-out. Thanks to their expertise and professionalism, the entire process went smoothly and exceeded all our expectations. valantic proved to be a reliable partner who understood our requirements precisely and implemented them efficiently. We can recommend valantic without reservation and look forward to working with them in the future.“
Challenges and solutions in detail
Following the IT due diligence carried out by valantic and the associated red flag report, the asset deal was signed in December 2023 and valantic was commissioned to support the implementation of the IT carve-out as part of an overall project management. The main objective was to outline options in terms of target state, general approach, timeline, cost, risk and other critical implications in order to structure the transaction in a meaningful and sustainable way and successfully migrate all relevant IT services (hosting, network, M365, workplace, …) until closing.
The IT carve-out
It is usually not possible within such carve-out projects to implement all integration steps by day one after closing. Interim periods are often planned for this purpose and measures, such as the use of TSA services (Transitional Service Agreement), are defined to bridge this transition period until the complete separation. However, as this was not the intention of Xovis, the project team had to have fully completed the IT migration by the closing date. Ultimately, the planned go-live date was met and all TSA services from the vendor were dispensed with.
Typical phases of a classic IT carve-out: from due diligence to IT integration
During the first phase, a comprehensive project set-up was developed, including the establishment of a PMO (project management office) and the implementation of project governance. In addition, a detailed schedule was drawn up, risk management was established and regular deadlines, document standards, work packages and workstreams were defined in order to ensure a structured project process and standardise the understanding of all project participants.
In order to gain an overview of the existing IT infrastructure, the server and application landscape of the companies involved was evaluated as part of an in-depth analysis. Based on this, the target design and future operation model (architecture, schedule, risks, etc.), the carve-out concept, the runbooks and the cut-over plan were developed.
Finally, the requirements for infrastructure, applications etc. were documented, the first providers (e.g. ISP) were commissioned and the first hardware (including server hardware, laptops) was ordered.
Nadine Friebel
Lead Consultant, valantic Management Consulting GmbH
”Despite occasional delays due to late WAN connections and server deliveries, our effective planning and a robust 'Plan B' always ensured that the go-live date was never jeopardised.“
Marlene Paetzold
Lead Consultant, valantic Management Consulting GmbH
”Everyone involved in this project worked closely together. Thanks to this and consistent project management, we managed to deliver all services on time as a project team.“
This initial conceptual phase was followed by a second phase of operational implementation. Outstanding hardware orders were placed, licences acquired, systems implemented and interfaces built. Migration plans were specified after consultation with all parties involved and finally finalised.
Additional challenges arose due to long delivery times and necessary conversion measures. The licensing and transfer of licences for a large number of applications had to be organised efficiently in order to ensure the operation of the new company. Special requirements for developer systems and the late release of the data migration shortly before the closing deadline increased the pressure.
Solving these complex requirements required close coordination between all parties involved, including suppliers, buyers and sellers. The successful collaboration of these various stakeholders was crucial to the success of the project.
valantic played a central role in this process and contributed significantly to its success through expertise, commitment and targeted project management. This success story shows how professional IT consulting and implementation can achieve excellent results even under difficult conditions.
The tried-and-tested Jira and Confluence tools proved to be effective for the project work, enabling the project to be implemented effectively despite the large number of people involved.
The experts at valantic were not the only decisive factor in the successful integration of People Sensing into Xovis AG’s IT infrastructure. Dedicated contact persons on both the buyer and seller sides ensured that the carve-out was completed on time, in the required quality and within budget by 1 June 2024.
Structured project management and smooth IT carve-out of People Sensing from the Group to the Xovis AG
Following the signing, People Sensing was separated from the previous IT environment and integrated into the corporate and IT infrastructure of the buyer, the Xovis AG.
Daniel Krzyzak
Partner & Managing Director
valantic Management Consulting GmbH