Carve-Out and Transition of Gemini Rail Group

A true blueprint for digatus – a contract where we could prove our capabilities as a full-service IT provider: The complete carve-out of a future medium-sized company. The scope included project management and implementation of the IT carve-out concerning the entire infrastructure, non-SAP applications, and the SAP system as a split-copy from a large corporation, as well as the gradual transfer to digatus operations in our Augsburg data center. In this comprehensive separation and transition within a tight timeframe, it was crucial to act quickly and in a structured manner, implement solutions tailored to the needs of the target as a future independent medium-sized company, and keep the three parties of the project team on the same track. Together with our SAP partner companies aplicado GmbH and Trigon Consulting GmbH & Co. KG, we succeeded in managing this project.
Client: Gemini Rail Group, formerly Knorr-Bremse RailServices UK

In November 2018, the investment company Mutares AG acquired the English RailServices division of Knorr-Bremse AG. This involved three locations in Great Britain with approximately 700 employees. The group, now renamed Gemini Rail Group, specializes in providing maintenance services for components and vehicles for rail vehicle owners and railway operating companies in Great Britain and Ireland.

Initial Situation and Challenges

In August 2018, the non-SAP carve-out project started with the goal of achieving the change of control after three months and thus completing the sale of Knorr-Bremse RailServices UK to Mutares in November 2018.
In this tight timeframe – additionally during the holiday season, which caused personnel shortages for all project parties – the task was to carry out the divestment and renaming of a part of the group with its own legal entity, two locations, and 350 IT users, and to gradually transfer the services to digatus operations. Subsequently, the SAP system of the already renamed Gemini Rail Group went live in February 2019.
In addition to the sheer volume of tasks for this project scope, there were also challenges from a legal perspective: under the uncertain framework conditions of Brexit, the service contracts had to be rewritten and set up according to applicable German law.

Solution

Based on the analysis results of an intensive baselining phase at the beginning of the project on-site, digatus created a concept for the future modern and efficient IT landscape, tailored to the needs and budget of the client.
Some somewhat outdated legacy applications turned out to be a particular challenge, which could only be moved with the support of the respective developers. As part of the independence process, all IT users received clients (notebooks, etc.) with a new Windows 10 image, as well as a modern telephony and conferencing solution based on Skype4Business. The client rollout took place in a staged approach, with the digatus team on-site supporting users during setup and transition. Here, we once again confirmed the importance and added value of clear project communication to accompany the employees of the target company in the process of change.
For the migration of the SAP system, our partner company aplicado chose the method of system copy and HANA database migration: A copy of the Knorr-Bremse SAP system was migrated to the digatus Data Center, which was previously cleaned of all data that did not belong to the data stock of the purchased entities. To ensure optimal performance, the database was simultaneously migrated from DB2 to SAP HANA. After setting up the archive and the required interfaces, the migration of the master and transaction data needed by Gemini took place as part of the go-live.

“Thanks to excellent IT expertise, competent partner companies in the SAP environment, and high personal commitment from the project team, digatus succeeded in implementing the carve-out and transition within the given time frame while realizing a modern, efficient IT tailored to the needs of a medium-sized company. We are pleased to have gained a reliable IT provider and project partner at our side with the successful completion of this project.”

Jürgen Ziegler – Principal Mutares AG

Customer Benefits

The Gemini Rail Group has been separated from the structures of its former parent company and now operates as an independent company. The IT infrastructure and equipment were modernized during the transition, and the SAP processes were aligned with the needs of the new agile medium-sized business. As the new service provider, digatus ensures secure and cost-effective IT operations with reliable personal support while adhering to agreed response times.

Picture of Christoph Pscherer

Christoph Pscherer

He has been working in the IT environment for almost 30 years, gaining experience in various roles and areas. Through his years of experience as a Service Manager, he knows the challenges and needs on the customer side. He has been applying this deep understanding and knowledge at digatus for more than eight years. As Head of BU IT M&A and Transformation, he and his team support all IT topics along the value chain of M&A projects. This includes due diligence, carve-out, and integration projects.

Christoph on LinkedIn

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