Target Information

Explore Equity (Explore) has partnered with the founders and employees of NOVA Consulting Group (NOVA), an esteemed IT consulting firm specializing in niche markets. This strategic partnership involves Explore acquiring a minority stake while the existing owners and employees maintain majority ownership, ensuring that the original vision and operational ethos of NOVA remain intact.

NOVA has been instrumental in aiding clients with the digitalization of critical business systems and solutions. Founded in 2007, the company now has a workforce of approximately 200 talented individuals stationed in Norway and Sweden. NOVA employs a distinctive ‘World’s Best Employer’ model, emphasizing continuous learning and employee ownership within its talent management framework.

Industry Overview

The IT consulting industry in Norway is experiencing significant growth, driven by an increasing demand for digital transformation across various sectors. With organizations striving to enhance their operational efficiencies, the need for consultancy services that guide these initiatives is at an all-time high. Digitalization has emerged as a critical focus for many businesses, with firms requiring support in transitioning from conventional practices to more technology-driven approaches.

As of 2023, the Norwegian IT consulting market is marked by its robust growth trajectory, significantly outpacing other segments within the technology industry. Companies are allocating greater budgets toward IT investments, particularly in areas such as strategic advisory, system development, and user experience design. This trend not only underscores the necessity for specialized IT consultants but also presents a lucrative opportunity for firms like NOVA that are adept at delivering customized solutions.

Moreover, the competitive landscape is evolving rapidly, with an influx of startups entering the market, thereby intensifying competition. Established firms are responding by innovating their service offerings and focusing on niche areas where they can excel. This atmosphere of dynamism and competitive spirit is likely to propel further growth and transformation in the sector.

NOVA's impressive annual growth rate of over 20% since 2014 is indicative of the company's solid market positioning and capability to adapt to the shifting demands of the IT landscape. With increasing recognition and demand for its unique employee-centric model, the potential for ongoing success remains promising.

Rationale Behind the Deal

The rationale behind this strategic investment by Explore Equity lies in the alignment of values and objectives with NOVA. By acquiring a minority stake, Explore aims to bolster NOVA's existing employee ownership model, promoting a culture of shared success and enhanced engagement within the workforce. Additionally, the partnership allows NOVA to leverage Explore's expertise in scaling operations and expanding its service offerings in both current and new business domains.

This collaboration is expected to facilitate a robust developmental phase for NOVA, propelling the firm further along its trajectory of sustained growth and service excellence while ensuring the values of employee empowerment and client satisfaction continue to be prioritized.

Investor Information

Explore Equity is a partnership-focused equity fund renowned for investing in Nordic companies that exhibit strong growth potential and distinctive characteristics. With a vast reservoir of experience spanning over 80 years in professional and financial services, as well as in industrial and consumer product segments, Explore seeks to create value by closely collaborating with existing management and partners.

Explore Equity prides itself on its partnership ethos, emphasizing a profound understanding of the companies it invests in and a collaborative mindset that fosters trust and innovation. The firm is dedicated to enabling portfolio companies to capitalize on their unique market opportunities, thereby driving sustainable growth and performance improvements.

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This partnership between Explore Equity and NOVA Consulting Group presents a promising investment opportunity. The strategic investment approach that Explore employs, focused on collaboration with existing management and commitment to employee empowerment, positions NOVA well for continued success. The unique operational model that NOVA has cultivated is indicative of its resilience and adaptability, making it a valuable player in the rapidly evolving IT consulting landscape.

Furthermore, NOVA's impressive growth rates and the increasing demand for digital consulting services reinforce the notion that this investment could yield significant returns. Explore's support can help NOVA expand its reach and optimize its offerings in light of emerging market trends, enhancing its competitive advantage.

In conclusion, the investment not only aligns with Explore's philosophy of partnership but also fosters NOVA's capabilities to meet the changing needs of the IT consulting industry. If executed with strategic intent and a focus on innovation, this partnership has the potential to deliver substantial value for all stakeholders involved.

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