Information on the Target

Avarn Security Oy is a leading security service provider in Finland, delivering comprehensive solutions to both businesses and public sector organizations. The company's offerings include security technology, alarm center services, and various security services tailored to meet diverse client needs.

Avarn Security as it exists today was formed in 2018 through the merger of Prevent 360 Security Services and Avarn Security, following Intera Partners' acquisition of ISS Security Oy and the security services division from ISS Services Oy at the end of 2016. Intera Partners has held a minority stake in Avarn Security since this merger, alongside the majority owner, the Norwegian security group Avarn Security Group.

Industry Overview in Finland

The Finnish security industry has seen significant growth in recent years, with an increasing demand for advanced security solutions among businesses and public institutions. This growth has been fueled by rising concerns over safety and security in both urban and rural areas, prompting investments in modern security technologies.

According to industry reports, the overall revenue from security services in Finland was projected to reach approximately €500 million in 2022, with a considerable number of companies contributing to various segments, including physical security, electronic security, and consulting services.

Avarn Security has successfully positioned itself in this growing market, leveraging its technological expertise and extensive service capabilities to meet customer demands. Furthermore, the trend towards outsourcing security services has continued to boost the market, allowing Avarn and its competitors to thrive.

With the backdrop of increasing competition among private security firms, the demand for comprehensive and integrated security solutions places companies like Avarn Security in a favorable position to capture further market share and extend their service offerings in Finland and beyond.

The Rationale Behind the Deal

The divestment by Intera Partners is seen as a strategic move aligned with its investment cycle, having held a stake in the security business for nearly seven years. During this period, Avarn Security has significantly expanded its operations and emerged as one of the leading players in Finland's security sector.

By transferring full ownership of Avarn Security to the Avarn Security Group, the company is poised for continued growth under the leadership and guidance of an experienced multinational corporation, which aims to streamline operations and enhance market presence in the Nordic region.

Information About the Investor

Intera Partners is a Finnish private equity investor focused on the growth and internationalization of companies. The firm manages two active funds totaling €585 million in assets, supporting a portfolio of 12 companies that collectively employ over 14,000 people and generate an estimated €1.2 billion in annual revenue.

Intera has a demonstrated track record of nurturing and scaling businesses, particularly in industries poised for expansion. Its expertise in developing strategic growth plans significantly contributed to the progress made by Avarn Security over the years.

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The divestment of Avarn Security by Intera Partners may be regarded as a strategic decision that reflects well on both parties involved. From an investment perspective, Intera's decision to exit at this juncture aligns with typical private equity timelines, marking a period of successful value creation for their stakeholders.

Avarn Security's strong financial performance, highlighted by a revenue reach of €114 million in 2022 and a workforce of approximately 3,000 employees, substantiates the claim that it has established itself as a prominent entity in the Finnish security landscape.

Moreover, with Avarn Security Group now fully owning the company, there is potential for enhanced operational synergies and expanded product offerings, which can lead to further growth opportunities. As a wholly owned subsidiary, Avarn Security is positioned to leverage resources and expertise within the larger group, likely benefiting both its service delivery and market outreach.

In conclusion, this transaction is expected to foster a strategic direction for Avarn Security that could facilitate its growth trajectory, while also serving as a judicious exit strategy for Intera Partners. Overall, this deal represents a favorable outcome for all parties concerned, reinforcing the ongoing evolution of the security industry in Finland.

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