Target Information

Avoset Oy, a leading Atlassian consultancy in Finland, is on a remarkable growth trajectory. Recently, the company has successfully acquired another Atlassian consultancy, Polar Shift Oy, to enhance its service offerings, particularly in cloud migration. This strategic move is aimed at capitalizing on the vast potential customer base in Finland, estimated to comprise around 1,000 clients, before extending its efforts internationally.

The merger will solidify Avoset's position as a premier provider of Atlassian solutions, with Tuomas Saranen, CEO of Avoset, emphasizing that the combined entities will create a center of excellence with extensive expertise in the application of Atlassian tools.

Industry Overview in Finland

The consulting landscape for software solutions in Finland is burgeoning, with an increasing demand for tools that streamline organizational workflows. Atlassian has established a strong presence in the Finnish market, thanks to its user-friendly software solutions like Jira, Confluence, and Trello. These tools are leveraged by over 225,000 organizations globally, marking a significant uptick in demand for expert consultancy services.

As noted by Tuomas Saranen, the role of Atlassian consultancies is crucial for clients utilizing these tools, offering substantial savings in time and resources while also promoting sustainable IT infrastructures and smoother operational processes. The future appears bright as the company embraces innovative practices to tackle emerging global challenges, such as climate change.

Furthermore, Atlassian’s shift from server-based products to cloud solutions is indicative of a broader trend within the industry. This strategic pivot, expected to be completed by 2024, underscores the importance of consultancy partners to facilitate this transition for businesses, thus generating increased opportunities for consultancies like Avoset.

Rationale Behind the Deal

The acquisition of Polar Shift by Avoset is designed to leverage complementary strengths, allowing Avoset to deliver enhanced services to its clientele, particularly during the pivotal transition to cloud-based products. Polar Shift's expertise in managing complex self-hosted Atlassian environments and integrations will bolster Avoset's existing capabilities, positioning the merged company as a more formidable player in the market.

This merger is part of Avoset’s broader strategic vision to capture a larger market share in Finland, with ambitions to explore opportunities in international markets subsequently. By integrating Polar Shift’s services, Avoset aims to offer clients versatile support options, helping to mitigate the challenges associated with cloud migration.

Investor Information

The merger is supported by prominent investment firms, including Takeoff Partners and Netprofile Growth Plus, as well as a network of angel investors. Markko Vaarnas, Chairman of the Board of Avoset, has highlighted that this investment round, coinciding with the merger, will provide essential resources for the company’s growth.

With a proven track record, Avoset is poised to benefit significantly from the existing market demand for Atlassian products, having already experienced a remarkable increase in turnover, which doubled to EUR 5.8 million in 2021, with expectations to reach nearly EUR 10 million this year.

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The merger between Avoset and Polar Shift is a promising strategic move that is likely to yield positive outcomes. By enhancing service capabilities and expanding their client base, Avoset is fortifying its competitive advantage within a rapidly growing market segment. The investment and support from key partners indicate confidence in the synergy derived from this merger, positioning the company to better serve existing customers while attracting new ones.

Moreover, the compelling shift towards cloud services underscores an industry need for knowledgeable consultancies, and Avoset, combined with Polar Shift’s expertise, is well-equipped to meet this demand. The ability to maintain and manage both server-based and cloud environments will not only benefit current clients but also appeal to potential clients still navigating these transitions.

Overall, if Avoset continues to leverage the strengths gained from this merger and invest wisely in scalability, it could well emerge as a leader in the Atlassian consultancy space, making this merger a strategic investment with robust future prospects.

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