Target Information

Fortum Recharge, a prominent entity in the electric vehicle (EV) charging sector, is poised for substantial growth through a strategic partnership aimed at enhancing its position in the public Charge Point Operator (CPO) market. The shared ownership structure established by the partnership will not only facilitate the acceleration of Fortum Recharge’s growth objectives but will also enable Fortum to allocate capital towards further expansion in partnership offerings, especially services tailored for its mobility customers.

As part of this partnership, Fortum will maintain ownership of its leading mobility services for digital public charging, in addition to providing home and destination charging solutions under its Charge & Drive and Plugsurfing brands. Furthermore, Fortum will continue to offer Software as a Service (SaaS) to facilitate the operation of EV charging infrastructure networks for other CPOs, ensuring a robust presence in the rapidly evolving market.

Industry Overview in the Nordic Region

The Nordic region is recognized as the global leader in electric vehicle adoption and infrastructure development, heavily supported by favorable government policies and stringent decarbonization targets. This advancement stems from the region's commitment to sustainability, which has spurred an escalating demand for public fast EV charging solutions. As consumer reliance on electric vehicles increases, public charging infrastructure must expand accordingly to meet the needs of this burgeoning market.

Government initiatives across Nordic countries are driving the transition towards electric mobility. These initiatives include financial incentives for EV users and support for the development of charging infrastructure, significantly contributing to the region's fast-paced growth in electric vehicle market penetration. The collaborative efforts of the public and private sectors have positioned the Nordics as a model for the future of transportation within Europe.

Moreover, as the Nordic EV market continues to evolve, significant investment in charging infrastructure, including public and private charging stations, has become indispensable. The demand for robust public fast EV charging options is projected to escalate sharply, making it vital for companies like Fortum Recharge to expand their networks in anticipation of mass electric vehicle adoption.

Rationale Behind the Deal

The partnership with Infracapital is set to enhance Fortum Recharge’s capability to scale its operations within this competitive market. By leveraging Infracapital’s expertise and financial backing, Fortum can expedite its growth in the EV charging sector while simultaneously maintaining its commitment to sustainability. This collaboration is not only a strategic move to seize the high-growth potential of the EV infrastructure market but also positions Fortum to remain at the forefront of the energy transition.

The collaboration will support Fortum's strategy of remaining a key player in the digital public charging market while diversifying its offerings to include enhanced mobility services. By pooling resources, both parties can better capitalize on the increased demand for effective EV charging solutions.

Investor Information

Infracapital is a prominent investment manager focusing on infrastructure assets across Europe, and Fortum Recharge represents its fifth standalone investment made through Infracapital Partners III. This acquisition marks Infracapital's first venture into the EV infrastructure sector while underscoring its commitment to fostering sustainable growth. With a portfolio that includes four major investments in the Nordics, Infracapital is well-positioned to guide Fortum Recharge in navigating the evolving landscape of sustainable infrastructure.

Christophe Bordes, Managing Director at Infracapital, emphasizes the firm's dedication to aiding Europe’s transition towards a low-carbon economy. His remarks highlight the strategic importance of electric vehicles in reducing carbon emissions, showcasing Infracapital’s vision of supporting high-quality scalable investment opportunities in this vital market.

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The partnership between Fortum Recharge and Infracapital presents a compelling investment opportunity, particularly given the rapid growth of the EV market in the Nordic region. With governments actively promoting electric mobility, this collaboration is strategically timed to maximize returns as public demand for charging infrastructure surges.

Fortum Recharge’s established brand recognition and early mover advantage provide a solid foundation for future expansion. Their strong utilization rates and existing partnerships further enhance their competitive edge. As the demand for EV charging solutions continues to escalate, Fortum Recharge is well positioned to capture a significant market share that informs a promising investment outlook.

Moreover, the alignment of both parties’ visions for a sustainable future establishes a resilient operational framework for achieving growth. The partnership harnesses Infracapital's expertise alongside Fortum's established service offerings, creating a dynamic approach to meeting market needs.

In conclusion, the strategic collaboration between Fortum Recharge and Infracapital not only signifies a strong investment opportunity but also highlights the critical role that sustainable infrastructure plays in the evolution of transportation in Europe. This venture is likely to realize considerable growth potential, reinforcing both companies' leading positions within the industry.

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