Information on the Target

Scanhold AB, operating under the brand name Scanmast, is a leading provider of critical infrastructure solutions catering to various sectors including telecommunications, lighting, security, and industry. The company manages comprehensive project execution, overseeing everything from planning and design to construction, installation, and ongoing maintenance services. Headquartered in Mora, Sweden, Scanmast employs approximately 80 professionals dedicated to delivering high-quality infrastructure solutions.

Under the ownership of Priveq Investment Fund IV, Scanmast has significantly enhanced its market presence in Sweden and Norway, while also extending its operations into Finland. The company has grown its sales to around SEK 300 million, demonstrating its effectiveness in expanding beyond telecommunications into broader critical infrastructure segments.

Industry Overview in Sweden

The critical infrastructure industry in Sweden is experiencing significant growth fueled by advancements in technology and increasing demands for telecommunications and utility services. The integration of digital solutions in infrastructure development is reshaping industry dynamics, leading to enhanced service delivery and operational efficiency. As a result, companies operating within this sector are well-positioned to capitalize on emerging opportunities.

Additionally, the Swedish government emphasizes the importance of robust infrastructure as a catalyst for economic development, leading to increased public and private investments. This push for modernization applies to several domains including mobile networks, green energy, and public safety. Consequently, firms like Scanmast that offer comprehensive solutions are crucial to meeting these national objectives.

The competitive landscape is characterized by a mix of established players and emerging startups, all vying to deliver innovative solutions. Strong partnerships alongside strategic acquisitions, such as Scanmast’s transaction with Volati, are increasingly commonplace as companies seek to expand their service offerings and market reach.

Looking ahead, the industry is anticipated to continue its upward trajectory, with an increasing focus on sustainable practices and smart technologies. This environment presents considerable growth opportunities for companies like Scanmast that are already leading stakeholders in critical infrastructure projects.

The Rationale Behind the Deal

The sale of Scanmast to Volati is driven by the substantial groundwork laid during Priveq's ownership, which has allowed the company to enhance its market position and broaden its operational capabilities. By aligning with Volati, Scanmast seeks to leverage additional resources and strategic insights to further accelerate its growth trajectory in the critical infrastructure domain.

This merger not only serves to strengthen Scanmast’s business potential but also provides Volati with an established platform to expand its portfolio within the infrastructure sector. The complementary nature of both organizations suggests a promising collaboration that could drive significant value creation moving forward.

Information About the Investor

Volati AB is a diversified investment company with a long-standing commitment to acquiring and managing businesses with potential for growth. Established in Sweden, Volati has built a reputable portfolio across various sectors, focusing on long-term value creation through active management and strategic investments.

The firm’s investment philosophy centers on fostering sustainable growth in its portfolio companies, driving operational efficiencies, and capitalizing on synergies between its businesses. This approach aligns seamlessly with their acquisition of Scanmast, positioning them well to enhance the latter's operational capabilities and market reach.

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From an investment perspective, the acquisition of Scanmast by Volati represents a strategically sound move that promises substantial returns. The ongoing growth in the critical infrastructure sector, combined with Scanmast’s strong positioning and expanded service offerings, presents an attractive investment opportunity.

Moreover, the partnership offers the prospect of operational synergies, which can significantly improve both companies' performance. With Volati’s experience and resources, Scanmast is well-poised to ascend to new heights, tapping into untapped markets and optimizing its service delivery models.

While potential execution risks always exist in mergers and acquisitions, the groundwork established by Priveq and the visionary leadership at Scanmast and Volati mitigates many of these risks. Given the favorable industry outlook and the proactive growth strategies being pursued, this deal is likely to provide a robust return on investment.

In conclusion, this transaction not only enhances Volati’s portfolio but also solidifies Scanmast’s future trajectory within a rapidly evolving industry. If executed with precision, this investment has the potential to yield significant long-term value for all parties involved.

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Volati AB

invested in

Scanhold AB

in 2023

in a Secondary Buyout deal

Disclosed details

Revenue: $28M

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