Information on the Target

Taratest Oy and 3D-KOPPI Oy have entered into an agreement for a share acquisition, which will result in the complete ownership of 3D-KOPPI Oy by Taratest, effective November 1, 2023. This strategic acquisition will enable Taratest to enhance its offerings in digital construction for its customers.

Taratest, a rapidly growing expert in geotechnics and environmental studies, is solidifying its expertise through this corporate acquisition. 3D-KOPPI, a pioneer in digital construction, has specialized in modeling and 3D machine control. With ten years of experience, the company has been instrumental in making digital construction accessible to small and medium-sized contractors. For the fiscal year ending in September 2023, 3D-KOPPI reported a revenue of approximately €0.9 million and employs a team of five, all of whom will continue in their roles post-acquisition.

Industry Overview in Finland

The construction industry in Finland has been experiencing significant advancements with the integration of digital technologies. As contractors increasingly adopt digital solutions, there is a growing demand for companies that can provide innovative modeling and project management services. This shift is particularly relevant for small to medium-sized enterprises (SMEs) in the sector.

Recent years have also seen a rise in environmental awareness, pushing firms to adopt sustainable practices. This has created opportunities for companies like Taratest, which offer environmental consultancy and geotechnical solutions that align with these evolving industry standards.

Furthermore, with substantial national infrastructure projects underway, seasoned firms such as Taratest are well-positioned to leverage their expertise in geotechnics. The industry is witnessing a continuance of government investments aimed at enhancing infrastructure, fostering an environment ripe for growth.

In this context, the collaboration between established players and innovative start-ups is increasingly important, as they can bring agility and fresh perspectives to traditional practices in the industry.

The Rationale Behind the Deal

This acquisition represents a strategically significant move for Taratest into the realm of digital construction. As projects become increasingly digitized, staying at the forefront of technological advances is imperative. Taratest's Leadership has recognized 3D-KOPPI's outstanding competencies in this area, making the acquisition a timely and thoughtful integration.

Tero Mäkinen, Head of Business Development and Strategy at Taratest, expressed confidence in the partnership, highlighting that combining resources will strengthen both companies' service offerings, granting customers a more comprehensive solution from a single provider.

Information About the Investor

Juuri Partners, the investment firm supporting Taratest's growth, has played a vital role in the latter's expansion journey. With a portfolio that totals approximately €200 million across two funds, Juuri Partners invests in established and profitable SMEs in Finland.

The firm combines active ownership with business support and debt financing to foster growth within its invested companies. Their expertise in the Finnish market offers valuable insights that will further accelerate Taratest’s operations and facilitate its strategic objectives in the digital construction domain.

View of Dealert

This investment can be viewed as a promising opportunity for both Taratest and 3D-KOPPI. The merger not only consolidates their positions in the geotechnics market but also enhances their capabilities in the growing field of digital construction. Given the ongoing trend towards digitalization in the construction industry, this acquisition aligns well with market demands.

The emphasis on integrating innovative technologies into construction practices is increasingly important, and by acquiring 3D-KOPPI, Taratest is positioning itself strategically to meet these changes head-on. Their combined expertise is likely to yield strong synergies that will benefit clients significantly.

Furthermore, as the construction industry evolves, having diverse technological capabilities will enable the businesses to adapt more effectively to future challenges, thus enhancing their competitive edge in the marketplace. The decision seems prudent and could yield a significant return on investment in the long run.

Overall, this acquisition appears to be a sound move, capitalizing on the strengths of both companies while addressing the emerging trends of digital construction and sustainability in the industry.

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