Target Information

Soft Cap Holding Sweden AB ('Soft Cap') has signed an agreement to acquire 100% of the shares of InfoTrader AB ('InfoTrader'), a prominent digital information company based in Ronneby, Sweden. The acquisition will take effect on October 29, 2021, with part of the purchase price being settled in Soft Cap shares.

InfoTrader is recognized as one of Sweden's leading knowledge companies specializing in digital information services. The company focuses on several key information areas, including real estate, corporate data, maps, vehicles, and personal information. Their business model consists of subscription services as well as pay-as-you-go options, catering to a diverse clientele across sectors such as energy, consulting, auditing, law, real estate, banking, finance, and insurance. InfoTrader currently employs around five staff members and operates an office in Karlskrona, with an annual revenue ranging between 40-45 million SEK and an EBIT margin exceeding 15%.

Industry Overview in Sweden

The digital information services industry in Sweden has experienced remarkable growth, driven by increased demand for accessible and accurate information across various sectors. With technological advancements and a surge in data-driven decision-making, companies are seeking comprehensive solutions that can provide valuable insights efficiently.

Moreover, the rise of fintech and proptech segments has significantly amplified the need for real-time data across finance and real estate industries. This situation presents immense opportunities for companies like InfoTrader, which can provide tailored information and insights to meet these emerging market demands.

Sweden's robust economy, characterized by a high level of innovation and digital transformation, creates a favorable environment for information service providers. As businesses and consumers become more reliant on digital solutions, the potential for growth in the information services sector continues to expand, driven by both local and international demands.

As the number of companies embracing digital tools increases, the competition among information service providers intensifies. Investments in technology and the expansion of service offerings remain crucial for maintaining a competitive edge in this dynamic landscape.

Rationale Behind the Deal

The acquisition of InfoTrader by Soft Cap is strategic and aims to bolster Soft Cap’s portfolio in the growing digital information service market. By integrating InfoTrader’s service offerings, Soft Cap will expand its capabilities and enhance customer value, particularly in niche areas such as real estate and corporate data.

Additionally, acquiring InfoTrader allows Soft Cap to capitalize on the existing customer base and leverage the company's established reputation in digital information services to enhance its market position and drive further growth.

Investor Information

Soft Cap Holding Sweden AB specializes in technology-driven investments and seeks to acquire companies that add value to its digital services portfolio. The firm focuses on building long-term partnerships and fostering innovation within its acquired businesses, which aligns with its mission of enhancing digital solutions across various sectors.

With a proven track record in facilitating strategic acquisitions, Soft Cap is well-positioned to integrate InfoTrader's operations effectively. The investor's expertise in the information services landscape enables it to guide and develop its acquisitions for sustainable growth and profitability.

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The acquisition of InfoTrader by Soft Cap appears to be a sound investment decision, particularly given the current demand for digital information services in Sweden. The increasing reliance on data across various sectors means that InfoTrader is entering a favorable market with significant growth potential.

Furthermore, integrating InfoTrader's expertise and customer base with Soft Cap's broader digital strategy could create synergies that enhance service offerings and customer satisfaction. This strategic move not only strengthens Soft Cap’s position in the market but also provides InfoTrader with the resources necessary to scale operations.

While the competitive landscape poses challenges, the strong brand recognition and established client relationships held by InfoTrader mitigate potential risks. The solid financial metrics, evidenced by a healthy EBIT margin, further support the value of the acquisition, suggesting that it could yield significant returns on investment in the long run.

In conclusion, Soft Cap's acquisition of InfoTrader is strategically aligned with market trends and presents an opportunity for both entities to drive innovation and growth in the digital information services sector.

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