Information on the Target

MB Rahastot has entered into an agreement dated May 31, 2019, to acquire TAPAUS, Finland's leading event marketing agency. As part of this acquisition, TAPAUS aims to boost its consumer event business by purchasing 100% of the shares of Roof Productions Oy, a company specializing in consumer events.

Established in 2012, TAPAUS has rapidly grown into the largest event agency in Finland over the past seven years, establishing a stronghold as the market leader in corporate events. The company views this acquisition as a timely opportunity to expand its reach into the consumer events sector, which aligns with its long-term growth strategy.

Industry Overview in Finland

The event marketing industry in Finland has seen significant evolution over the last decade, driven by technological advancements and changing consumer preferences. Event companies are increasingly focusing on creating immersive experiences to engage participants, as consumers seek more interactive and memorable events.

In recent years, the Finnish event marketing landscape has become increasingly competitive, with both established players and new entrants leveraging innovative strategies to differentiate their services. Companies are constantly adapting to trends such as digitalization, sustainability, and audience engagement to stay relevant and meet their clients' expectations.

Finland's event market has also benefited from internationalization, with numerous Finnish agencies participating in global networks and collaborations. This opens avenues for Finnish firms to access broader markets and attract international clients, enhancing their revenue streams.

However, the industry faces challenges, including economic fluctuations and the ongoing need for regulatory compliance, particularly post-pandemic. Successful companies will be those that can navigate these complexities while continuing to deliver exceptional service to their clients.

The Rationale Behind the Deal

The strategic acquisition of Roof Productions aligns with TAPAUS's vision to strengthen its position in the consumer events sector. CEO Timo Aalto emphasized that corporate events have historically been TAPAUS's primary business, but recent efforts have focused on expanding their trade fair operations on both domestic and international fronts.

By acquiring Roof Productions, TAPAUS can tap into an established brand known for its successful consumer events, thereby increasing its market share in this segment from 15% to 30% of total revenues, and projecting a pro forma revenue of over 30 million euros for the current year.

Information About the Investor

MB Rahastot, founded in 1988, is a leading Finnish private equity investor managing a total of 0.5 billion euros in investment funds. Primarily backed by notable Finnish institutional investors, MB Rahastot has a history of successfully investing in approximately 40 medium-sized companies across the Nordic region.

The firm aims to enhance TAPAUS’s operational capabilities through its financial support, creating a solid foundation for the accelerated development of the company and the fostering of strategic initiatives that can drive growth.

View of Dealert

The acquisition of Roof Productions by TAPAUS, facilitated by MB Rahastot, represents a strategic move that is likely to yield substantial benefits for all parties involved. For TAPAUS, this acquisition broadens its service offerings and enhances its ability to compete in an increasingly crowded market. Gaining Roof's expertise and reputation will complement TAPAUS's existing operations, allowing for synergistic growth.

Furthermore, TAPAUS's focus on integrating Roof's operational capabilities within its existing structure aims at maintaining continuity for both staff and clients, which is essential for smooth business operations post-acquisition. The transition of Roof’s employees to TAPAUS will also foster a unified corporate culture, enhancing operational efficiency.

With a growing consumer events division and an expected substantial increase in revenue, TAPAUS appears well-positioned to leverage this acquisition effectively. The alignment of business philosophies between Roof Productions and TAPAUS further supports the potential for a successful integration.

In summary, this deal not only signifies a positive trajectory for TAPAUS as it scales its consumer events division but also highlights MB Rahastot’s commitment to investing in high-potential growth companies within a dynamic industry landscape.

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