Target Information

IT Gården AB, along with its subsidiaries, is a prominent provider of IT services outsourcing primarily serving small and medium-sized enterprises in the Skåne region of Sweden. The Company specializes in various IT services, including IT outsourcing, infrastructure, virtualization, and client platforms, aiming to simplify the process for customers seeking to outsource their IT needs. With a strong focus on delivering cost-effective solutions and maintaining a stable and efficient IT environment, IT Gården has established itself as a trusted partner for businesses in the area.

Headquartered in Landskrona, Sweden, IT Gården has shown consistent growth and high levels of customer satisfaction since Norvestor's investment in December 2016. Notably, in November 2018, the Company expanded its offerings through the acquisition of Dimac Hosting, a well-respected IT outsourcing provider in Helsingborg, further solidifying its market position.

Industry Overview in Sweden

Sweden's IT services sector has been on an upward trajectory, fueled by digital transformation across various industries. As companies increasingly recognize the need for efficient IT solutions, the demand for outsourcing services has surged, especially among small and medium-sized enterprises that seek to leverage expert services while minimizing operational costs.

The competitive landscape in the Swedish IT outsourcing market is characterized by rapid technological advancements and a growing emphasis on cybersecurity, cloud solutions, and personalized IT services. Providers that can offer tailored and scalable solutions are particularly well-positioned to capture market share.

Moreover, with the ongoing trend of digitalization, businesses in Sweden face mounting pressure to adapt their IT infrastructures swiftly. This environment creates significant opportunities for established players like IT Gården, which can deliver robust IT services that cater to the evolving needs of clients.

The consolidation trend within the industry also plays a crucial role, as it allows companies to enhance their service capabilities through strategic mergers and acquisitions. As the market matures, partnerships and larger organizations are fusing to attract a broader client base and innovate more effectively.

Rationale Behind the Deal

The divestment of IT Gården by Norvestor to Candidator DGC Management AB, known as Iver, is rooted in a mutual belief in the potential for growth and increased service offerings. Norvestor has successfully supported IT Gården’s management in enhancing organizational capabilities, including the establishment of a Malmö office and facilitating the acquisition of Dimac Hosting.

By joining forces with Iver, IT Gården positions itself to navigate the complexities of IT demands faced by clients, thus facilitating expansion and improved service delivery in a consolidating market.

Investor Information

Norvestor VII, L.P. is a prominent investment firm specializing in investments across Northern Europe, particularly in sectors experiencing robust growth. With a strong track record, Norvestor has a reputation for nurturing businesses, providing them with strategic guidance, operational support, and the expertise necessary to innovate and expand.

Norvestor's involvement with IT Gården underscores its commitment to enhancing the performance and market position of its portfolio companies. Their strategic initiatives have led to significant improvements in operational efficiency and market reach during the investment period.

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This transaction signals a strong alignment between IT Gården and Iver, with the potential to create a more integrated service offering that addresses the increasingly complex requirements of clients in the IT space. The acquisition is anticipated to enhance operational capabilities and customer service, establishing one of the leading providers in the region.

Furthermore, this deal aligns with the broader trend within the IT industry of consolidating resources to leverage synergies for improved service delivery. The combined entity is poised to foster innovation and attract new clients, especially from sectors that are actively seeking reliable IT outsourcing solutions.

From a financial perspective, Norvestor's successful exit also underscores the ideal timing of the divestment, providing a return on investment while ensuring IT Gården continues to thrive under new ownership. Given Iver’s strengths and market position, IT Gården is well positioned to continue its growth trajectory.

In conclusion, this acquisition marks a pivotal moment for IT Gården, offering substantial opportunities for sustained growth and market leadership within the competitive IT outsourcing landscape in Sweden. It is a strategic transaction that is likely to yield favorable outcomes for shareholders and clients alike.

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