The union of Chaos and Enscape will form a visualization powerhouse covering several sectors ranging from AEC, VFX, to vertical products.
Global private equity firms TA Associates and LEA Partners today announced an agreement to merge Chaos, a global leader in photorealistic rendering technology, with Germany’s Enscape, a leader in real-time interactive rendering technology for AEC industries.
A complete leader
The merger of the fast-growing AEC-focused Enscape with Chaos, headquartered in Bulgaria, will establish a global leader in 3D visualization workflows for several industries, AEC, industry and retail. product design for the visual effects industry (VFX). segments like cinema, broadcasting and animation.
The new combined company will retain the name of Chaos and Peter Mitev, CEO and co-founder of Chaos, and Christian Lang, CEO of Enscape, will share the title of co-CEO of the new company. Vladimir Koylazov, co-founder of Chaos and current head of software operations, will also continue to lead R&D and innovation in a leadership position.
The amalgamated company will have a combined workforce of 500 employees across the world. The head office of the new merged company will be located in Karlsruhe, Germany, with additional development, support and sales offices in Sofia (Bulgaria), Prague (Czech Republic), Tokyo (Japan), Seoul (Korea) , Los Angeles and New York (United States).
TA Assoc. + LEA Partners
“Enscape has experienced a period of extraordinary growth, overtaking an already rapidly growing market. We are delighted to join forces with Chaos as we seek to expand our scale, recognizing that our businesses are highly complementary and share an end-to-end product vision, ”said Christian Lang. “With the support of LEA and TA, we will significantly increase our investment in growth, technology and people. “
We find that bringing Enscape and Chaos together provides a unique opportunity to build a technological powerhouse to pave the way for AEC and beyond.
TA Associates was founded in 1968 by Peter Brooke in Boston as a private investment firm. In the early 1980s, she opened an office in Silicon Valley and then in 2003 opened her office in London. The company has a solid track record of investing in venture capital in technology companies. LEA Partners is a German-based private equity and venture capital firm.
“Since our initial investment, we’ve worked closely with Enscape’s management team to make the company a premier supplier to the AEC industry, and that’s just the start,” says Christian Roth, Managing Partner at LEA Partners. “We find that the reunion of Enscape and Chaos offers a unique opportunity to build a technological powerhouse to pave the way for AEC and beyond. “
“We have been impressed with the growth, high quality product offerings and loyal customer base of Chaos and Enscape,” said Dandl, principal at TA. “Together, we believe the company can build on its strong momentum to create a global leader in 3D visualization and design workflow space. In partnership with LEA, we are excited to invest in the future of the business by deepening product capabilities and expanding the breadth of offerings and geography.
New executive management
Although financial terms have not been disclosed, TA will join LEA, the current majority shareholder of Enscape, in the new merged company, alongside the management of Chaos and Enscape, which will retain a significant minority stake.
As part of the transaction, Sean Flaherty will also become Chairman of the Board of Chaos. Flaherty was the former chief strategy officer of the Nemetschek Group, one of the world’s largest AEC software conglomerates, and prior to that, the former CEO of Nemetschek’s subsidiary, Vectorworks, Inc. Flaherty was currently chairman of the board of administration of Enscape.
The transaction is subject to customary regulatory approvals and is expected to close in the first quarter of 2022.