Information on the Target

Raksystems Group has significantly expanded its operations in Sweden by acquiring all shares of Projektledarhuset i Stockholm AB, a prominent property consulting firm based in Stockholm. The acquisition agreement was signed on June 11, 2020, with the transaction expected to close in July 2020. This strategic move allows Raksystems Group to offer a comprehensive range of property lifecycle services to its clients in Sweden, similar to what is provided in Finland.

Founded in 2005, Projektledarhuset boasts extensive experience in various construction project management initiatives. For the fiscal year ending June 2020, the company's revenue is anticipated to reach approximately 120 million SEK. Projektledarhuset employs 65 full-time staff members, supplemented by numerous subcontractors.

Industry Overview in Sweden

The Swedish construction industry has shown resilience and growth, bolstered by increasing public infrastructure investments and a growing demand for residential projects. In recent years, the sector has adapted to incorporate sustainable practices, making it a hub for innovative construction methodologies and environmental considerations.

Furthermore, the Swedish government has implemented policies that encourage the construction of energy-efficient buildings and environmentally friendly development projects. This has led to a rise in companies specializing in green certifications such as LEED and BREEAM, which Projektledarhuset offers expertise in. The industry's focus on sustainability aligns well with global trends prioritizing eco-friendly construction practices.

Additionally, Sweden's robust economy, characterized by a stable regulatory environment, attracts both domestic and international investments in the real estate sector. As demand for properties increases, project management firms that can adeptly handle complex construction tasks and compliance requirements are in high demand.

Overall, the combination of favorable economic conditions and an industry-wide push for sustainable development positions Sweden as a lucrative market for property consulting and management services.

The Rationale Behind the Deal

The acquisition of Projektledarhuset i Stockholm AB is strategically aligned with Raksystems Group's intention to fortify its presence in Sweden. By integrating Projektledarhuset's expertise and service offerings with existing services provided by Dry-IT, Raksystems aims to enhance the customer experience throughout the property lifecycle in the Swedish market.

The deal not only expands Raksystems’ service portfolio but also strengthens its operational capacity by leveraging Projektledarhuset's established reputation and client relationships within the construction and real estate sectors. This collaborative approach is expected to attract a broader clientele and enhance service delivery in both new and existing markets.

Information about the Investor

Raksystems Group is a leading property consultancy firm founded in 1989, specializing in maintaining the well-being of buildings. The company emphasizes sustainable choices and practices in its operations, focusing on reducing the environmental impact of properties while ensuring the welfare of users and owners alike. With a workforce of approximately 440 employees across Finland and Sweden, Raksystems Group is well-positioned to leverage synergies between its various offerings.

The group has a track record of successful expansions, having previously acquired Dry-IT, a firm known for its moisture management and sustainable property maintenance services. This acquisition strategy indicates Raksystems' commitment to enhancing its service capabilities and addressing client needs in an evolving marketplace.

View of Dealert

From an investment perspective, the acquisition of Projektledarhuset i Stockholm AB presents a compelling opportunity for Raksystems Group. The integration of comprehensive project management services with existing offerings enhances its competitive edge, establishing a stronger foothold in Sweden's thriving market.

Moreover, the alignment of Projektledarhuset's expertise in project management and sustainability with Raksystems’ mission of promoting environmentally responsible choices provides additional value. As Sweden increasingly prioritizes green construction practices, Raksystems stands to benefit from heightened demand for its enhanced offerings.

However, successful integration will be crucial. Raksystems must ensure that the operational cultures and processes of both firms align effectively to realize the anticipated synergies. Given the strong existing customer base of Projektledarhuset—which includes notable clients such as Locum and the City of Stockholm—the potential for cross-selling and improved service delivery is significant.

In conclusion, this acquisition not only solidifies Raksystems Group's position in the Nordic region but also opens avenues for future growth. If managed effectively, it could result in substantial returns on investment and a strengthened market position for the group in the coming years.

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