Target Information

Danoffice IT, a sustainable IT provider based in Denmark, has recently entered into an agreement to acquire edgemo A/S, a prominent Danish supplier of IT infrastructure products and solutions. This acquisition will enhance Danoffice's capabilities significantly, as edgemo is recognized for its exceptional consulting and managed services. The transaction is currently pending approval from the Danish Competition and Consumer Authority, and specific financial terms have not been disclosed.

Headquartered in Århus, edgemo has established itself as a leading provider of IT infrastructure products and solutions, catering to both private and public sector clients. Notably, edgemo serves large Danish corporates with extensive operations in over 80 countries. The company is distinguished by its impressive credentials, including nine-time Microsoft Gold Partner status, Citrix Platinum Partner designation, and being one of only three HP Enterprise Platinum partners in Denmark.

Industry Overview in Denmark

The Danish IT sector is characterized by a robust framework that fosters innovation and sustainable practices. Known for its high-quality IT infrastructure, Denmark ranks among the top countries in Europe for digital competitiveness. The favorable regulatory environment supports both domestic and international IT companies, enabling them to deliver high-value solutions effectively.

Furthermore, Denmark has a strong emphasis on sustainability, making it a frontrunner in sustainable IT solutions. Corporations actively seek environmentally friendly products, which has led to the growth of companies specializing in sustainable practices, such as Danoffice and edgemo. This growing trend is likely to continue as more businesses adopt sustainability as a core aspect of their operations.

In addition, the public sector in Denmark has increasingly turned to digital solutions, promoting efficiency and transparency. With significant investments in technology infrastructure, government institutions are also contributing to the industry's expansion. This creates opportunities for companies like Danoffice to leverage their expertise and provide tailored solutions to meet the growing demand.

The integration of IT infrastructure with emerging technologies such as artificial intelligence, cloud computing, and data analytics has further revolutionized the landscape. Danish companies are at the forefront of this transformation, aiming to enhance productivity and customer experiences through innovative IT solutions.

Rationale Behind the Deal

The acquisition of edgemo by Danoffice is a strategic move aimed at accelerating growth and expanding market reach. By incorporating edgemo's robust product offerings and established customer base, Danoffice can enhance its service capabilities and strengthen its competitive advantage in the sustainable IT landscape. The deal is expected to generate significant synergies, particularly through cross-selling opportunities and the enhancement of existing technical expertise.

Adding edgemo to its portfolio aligns with Danoffice's long-term vision of diversifying its customer base, which includes international organizations and NGOs. This acquisition not only strengthens Danoffice's service portfolio but also enhances its capability to serve clients across various sectors more effectively.

Investor Information

Agilitas, the pan-European mid-market private equity firm backing Danoffice's growth, has been instrumental in supporting strategic acquisitions within its portfolio. By investing in Danoffice in November 2017, Agilitas has enabled the company to expand its offerings and customer reach through strategic plans, including the acquisition of complementary businesses like edgemo.

Agilitas is known for its collaborative approach and commitment to value creation, focusing on companies with high growth potential. Their extensive experience in the private equity sector positions them well to guide Danoffice in realizing its ambitions and maximizing the strategic benefits of this latest acquisition.

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The acquisition of edgemo by Danoffice represents a promising investment opportunity, underpinned by strong strategic alignment and growth potential. The integration of edgemo's extensive offerings and geographical presence will complement Danoffice's existing portfolio, positioning the company for enhanced competitiveness in the sustainable IT market.

Moreover, Danoffice's ongoing commitment to sustainability aligns well with the growing trend among businesses and government entities prioritizing environmentally friendly practices. This alignment is essential in capturing new markets and expanding their customer base, particularly in the public sector and international organizations.

Additionally, the anticipated synergies from this acquisition could drive operational efficiencies and enhance profitability. With a bolstered sales team and robust technical expertise, Danoffice is well-positioned to seize cross-selling opportunities and capitalize on edgemo's established client relationships.

In conclusion, this acquisition is likely to be a transformative step for Danoffice, allowing it to consolidate its market position, enrich its service offerings, and achieve sustainable growth in the evolving IT landscape.

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