Target Company Overview

21grams is a leading company based in Stockholm that specializes in optimizing and digitizing large volumes of communication for businesses. With a workforce of approximately 70 employees, the company has achieved an impressive revenue generation of around 770 MSEK. Its clientele includes notable organizations such as AGA, Länsförsäkringar, Rädda Barnen, ST1, Tele2, Unicef, and Vasakronan.

During its ownership period under Priveq Investment IV, 21grams has expanded notably, achieving organic growth and making several acquisitions that have enabled the company to enter new markets and broaden its service offerings. Since Priveq's initial investment, 21grams has seen its revenue increase from roughly 500 MSEK to 770 MSEK, alongside enhanced profitability.

Industry Overview in Sweden

The digital services industry in Sweden is characterized by rapid growth, driven by increasing demand for digital transformation across various sectors. Companies are continuously seeking innovative solutions to manage their high communication volumes efficiently. This has created a booming market for services to facilitate better interaction between businesses and their customers.

Additionally, the rise in e-invoicing and digital payment solutions has been noteworthy, with many organizations adopting these technologies to streamline operations. As of now, 21grams handles approximately one-fourth of all e-invoices in Sweden, showcasing its pivotal role in the market.

In the fintech landscape, particularly, Sweden has established itself as a hub for innovation, with numerous startups and established companies evolving their offerings to cater to market needs. This environment of technological advancement has fostered competitive growth, compelling companies to continuously innovate to stay relevant.

The competitive dynamics present not only fuel opportunities for growth but also attract significant investments into the sector, particularly from companies looking to strengthen their digital capabilities and market presence.

Rationale Behind the Deal

The divestment of 21grams by Priveq Investment IV to Unifiedpost Group aligns strategically with the growth ambitions laid out by both parties. Unifiedpost Group aims to integrate 21grams into its operations to enhance customer value and expand its footprint in the Nordic region.

Under Priveq's ownership, 21grams has established a robust foundation for continued growth and innovation. The acquisition is expected to leverage this established structure while enabling further investment in new markets and service offerings.

Investor Information

Priveq Investment IV is a prominent investment firm known for its strategic partnerships with high-potential companies in the Nordic region. The firm’s investment strategy is rooted in supporting companies through various growth phases, focusing on operational improvement and market expansion.

With a reliable track record of delivering significant value to portfolio companies, Priveq has demonstrated its commitment to fostering innovation and driving transformations that align with market trends. Their approach has been essential in enabling 21grams to achieve its current success.

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The acquisition of 21grams by Unifiedpost Group is viewed positively, as it represents a strategic alignment between two entities focused on expansion and innovation within the digital communications industry. 21grams has demonstrated a remarkable trajectory under Priveq's guidance, positioning itself well to capitalize on emerging opportunities.

Moreover, the transaction opens avenues for Unifiedpost Group to enhance its service offerings and market presence, particularly in the Nordic region where demand for digital solutions continues to surge. The successful integration of 21grams should accelerate growth and further cement Unifiedpost’s standing in the market.

The strong foundation laid by Priveq, including organizational structure and operational efficiencies, provides a promising platform for Unifiedpost Group to build upon. As 21grams continues to innovate, its existing customer base and reputation will serve as valuable assets in driving future growth.

In conclusion, this deal is not only an exit strategy for Priveq but also marks the beginning of a new growth chapter for 21grams under Unifiedpost Group. The anticipation of added resources and strategic direction from Unifiedpost augurs well for the shaping of 21grams' future success.

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Unifiedpost Group

invested in

21grams

in 2023

in a Add-On Acquisition deal

Disclosed details

Revenue: $70M

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