Q3 deal volume remains resilient, continued increasing deal activity by international buyers.

Nordhaven has identified 27 software deals in the Nordic region in Q3 2023, in line with Q3 2022 deal activity. Albeit a slight decline from Q2 2023, deal volumes show robustness. Measured in numbers of deals, Norway was the most active country followed by Sweden and Denmark, respectively.

Deal volume experienced robust growth from Q1, with increased share of international buyers.

Nordhaven, in Q2 2023, has identified 32 software deals in the Nordic region, marking growth for the first time in four consecutive quarters. This period reflects the highest transaction volume since Q2 2023. The growth is primarily driven by a significant increase in transaction volume from Denmark, rising from 2 identified deals to 9.

Toijala Works Oy is a machinery and equipment company with expertise especially in heavy industrial vehicles. Its offering includes contract manufacturing but also own products, such as its line of TW LogStackers. The family owned company has revenues of approximately EUR 45 million and employs around 200 professionals. The new EUR 31 million financing package includes a commercial guarantee limit, term loans, and an overdraft.

“The financing package secures our new factory and machinery investments and provides financial flexibility for future business opportunities. Thanks to Nordhaven, we now have diversified sources of financing. We are very satisfied with Nordhaven's support – from process planning to signing", says Heimo J. Aho, Chairman of Toijala Works Oy.

"We thank Toijala Works for their trust in Nordhaven. The transaction is yet another proof of our Debt & Capital Advisory and industrial sector capabilities", says Martti Purhonen, Partner at Nordhaven.

For further information:

Martti Purhonen, +358 45 616 1551, martti.purhonen@nordhaven.com

Kalle Helander, +358 40 504 3462, kalle.helander@nordhaven.com

Nicholas Sörensen, +358 40 560 6446, nicholas.sorensen@nordhaven.com

Nordhaven guided industrial maintenance company Elcoline in a major transaction to support the company's next growth leap.

Nordhaven advised Elcoline and its owners in a transaction in which EAB Private Equity, part of Evli Group, is making a significant equity investment in rapidly growing Elcoline. In addition to EAB Private Equity, which led the investment round, other investors include Elo Mutual Pension Insurance Company and the investment companies Tesi and Arvo Sijoitusosuuskunta. Elcoline's founders and key personnel will continue as significant shareholders in the company.

Elcoline is a leading Nordic entrepreneur-driven company founded in Varkaus, Finland in 2002. It specializes in industrial maintenance services and the implementation of demanding technical projects. Elcoline employs more than 600 professionals in Finland and Sweden and had a pro forma revenue of EUR 67 million in 2022. The majority of its revenue is from long term service contracts, which creates a solid foundation for profitable growth. A large part of Elcoline's revenue comes from the energy and infrastructure sectors. The company is a Nordic leader in energy supply security and the smooth transition to new low-carbon energy systems and production. Elcoline's customer base includes well-known international industrial companies such as ABB, Andritz, Meyer, Outokumpu, Parmaco and SSAB.

In this transaction, the total investment in Elcoline is more than EUR 20 million, which will be used to continue the company's acquisition-driven growth strategy and reorganise the current ownership structure. The aim of this new investment is to accelerate the company's growth to a size of over EUR 200 million.

"We thank Nordhaven for assisting Elcoline and its owners in negotiating and structuring the deal, utilizing its financial expertise. Nordhaven has now been our partner in two key transactions, both of which are important steps for us to achieve our growth targets", says Jere Räisänen, Chairman of the Board at Elcoline.

"It is great to advise and support companies that have very ambitious growth plans. And it has been a joy to be involved in Elcoline's journey in implementing its strategic actions", say Ari Leppänen, Partner in Nordhaven.

For further infomation:

Ari Leppänen, +358 40 525 9241, ari.leppanen@nordhaven.com

Niko Piiparinen, +358 40 752 2333, niko.piiparinen@nordhaven.com

Deal activity stabilizes around pre-covid levels with a total of 22 transactions identified for the quarter. Nordhaven experience continued strong interest for high quality Nordic software companies.

Nordhaven acted as financial advisor for Helsinki-listed Solteq Plc in the carve-out and divestment of its Nordic ERP business, which is based on Microsoft Dynamics 365 Business Central and LS Retail solutions. The purchaser is Azets, the international outsourcing, compliance, and advisory group backed by HgCapital. The transaction was closed on May 2nd, 2023.

The net debt-free purchase price of the business is a maximum of EUR 20 million, consisting of the fixed purchase price of EUR 15 million and the earn-portion of a maximum of EUR 5 million. In 2022, the revenue of the transferring business was EUR 11.2 million and the operating profit was EUR 1.5 million. The business includes employees and customers in Finland, Sweden, Norway, and Denmark.

After the divestment Solteq will focus even more on providing superior software solutions and IT expert services for the energy sector, retail, and e-commerce, whereas Azets has ambitions to become a major implementation partner and provider of Microsoft Dynamics 365 Business Central based services and solutions, leveraging its wide customer base and presence across Europe.

"The transaction is already the fourth corporate carve-out and divesture transaction by a publicly listed company that Nordhaven has advised during the past six months. We are thankful for the responsibility that was given to us by Solteq, and believe that this is a true win-win transaction for both the purchaser and the seller, as well as for the customers and the employees of the business." says Juha Raunio, a managing partner at Nordhaven Finland.