Target Information

Agilitas Private Equity LLP ("Agilitas"), a pan-European mid-market private equity firm, has announced an agreement to acquire NNIT’s IT infrastructure outsourcing business, which encompasses its Hybrid Cloud Solutions along with selected components of its Cloud & Digital Solutions division, referred to collectively as "NNIT IO." NNIT IO stands out as a premier provider of IT infrastructure outsourcing services, catering to major public and private institutions in Denmark.

NNIT's origins are deeply rooted in the Novo Nordisk Group, lending the company extensive expertise and experience in the pharmaceutical sector to create critical IT solutions across various industries where quality and security are paramount. Based in Copenhagen, Denmark, NNIT IO boasts over 25 years of industry experience, specializing in managing essential IT systems for clients. The firm offers comprehensive and tailored outsourcing solutions, which include data storage, server management, network integration, and advisory services related to cloud transitions and cybersecurity. NNIT IO is among the few dedicated IT service providers in Denmark that successfully combines the efficiency of a global enterprise with the adaptability required to meet the specific needs of Danish public and private sector clients.

Industry Overview in Denmark

The Danish IT services market has shown robust growth due to its strong emphasis on digital transformation across various sectors. Businesses in Denmark are increasingly investing in IT infrastructure to enhance their productivity and efficiency, helping to position Denmark as a leader in the adoption of cloud technologies and digital solutions. The focus on IT security and compliance is also at an all-time high, driven by stringent regulations and the growing threat of cyberattacks.

Danish IT service providers, like NNIT IO, are uniquely positioned to benefit from the increasing demand for secure, reliable IT solutions as both the public and private sectors navigate the complexities of digital transition. With a deep understanding of local market requirements and industry-specific challenges, NNIT IO allows its clients to maintain control over their data within Denmark, thus alleviating concerns related to data sovereignty.

The industry's future appears optimistic, with forecasts indicating substantial investments in IT infrastructure and services over the coming years. This trend is propelled by the continuous evolution of technology, such as the integration of artificial intelligence and machine learning to enhance operational efficiency. Additionally, with an ever-growing emphasis on sustainability, companies are looking for IT solutions that align with their environmental objectives—an area where NNIT IO excels with its renewable energy initiatives.

Moreover, the demand for flexible and customized IT solutions presents an opportunity for NNIT IO to expand its offerings further. The convergence of IT with other sectors, particularly healthcare and finance, highlights the critical need for advanced data management systems, positioning NNIT IO to capitalize on potential growth avenues in the near future.

Rationale Behind the Deal

The decision to back the buyout of NNIT IO is primarily driven by the significant transformational potential of the business following its carve-out from NNIT. This strategic move is expected to enhance AGILITAS’s portfolio and provide an avenue for increased operational flexibility within NNIT IO. The established relationships with high-profile customers in resilient sectors kindled interest in this investment, ensuring a steady revenue stream for future growth.

Furthermore, the emphasis on sustainability and energy efficiency within NNIT IO aligns with the increasingly crucial market trend towards responsible and eco-friendly business practices, enhancing its attractiveness to investors. By focusing on a firm that champions renewable energy usage and innovative sustainable solutions, Agilitas is positioned to invest in a future-oriented company, driving both profitability and social responsibility.

Investor Information

Agilitas Private Equity LLP is recognized as a proficient investor within the mid-market sector, boasting a diverse range of investments across Europe. The firm emphasizes collaboration and partnership with portfolio companies to realize their full potential, leveraging strategic insights and industry knowledge to foster growth. Agilitas's commitment to sustainability and innovation aligns well with the operational ethos of NNIT IO, making this partnership particularly synergistic.

The firm's extensive experience within the IT sector equips it with the ability to understand market dynamics and capitalize on emerging opportunities effectively. With a solid track record in managing growth-stage companies, Agilitas is well-positioned to support NNIT IO’s ambitious plans to expand its service offerings and enhance its market presence.

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The acquisition of NNIT IO by Agilitas presents a compelling investment opportunity, given the prevailing trends in the IT services market. The company’s well-entrenched status in Denmark and robust client relationships provide a solid foundation for sustained revenue growth. The carve-out from NNIT is poised to unlock additional value, enabling NNIT IO to operate with enhanced flexibility, tailor its solutions to meet specific client needs, and hone its competitive edge in the marketplace.

Moreover, NNIT IO’s commitment to sustainability and data security addresses critical concerns for modern enterprises, significantly increasing its attractiveness to prospective clients across sectors. As businesses prioritize secure IT infrastructure and environmental accountability, NNIT IO's unique position places it at the forefront of supplying relevant solutions.

In terms of financial prospects, NNIT IO’s operational model, which emphasizes long-term client relationships and sustainable practices, aligns with current market demands. If managed effectively, Agilitas has the potential to substantiate strong returns on its investment, propelled by the consistent growth trajectory of the IT services industry in Denmark.

Overall, while the investment entails inherent risks typical of private equity deals, the strategic move by Agilitas in acquiring NNIT IO appears to be a well-considered decision that could yield substantial rewards in the long run, reinforcing its position within the lucrative Danish IT services sector.

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