Tietokeskus acquires Enfo, Epical to remain in the ownership of Osuuskunta KPY
Today, KPY announced that Tietokeskus will acquire the Enfo Oy and that, KPY continues as the majority shareholder of Epical.
This strategic move follows our last year’s demerger, positioning us to enhance our brand and strengthen our company as a leading Nordic pure-play data consultancy. The arrangement will also provide Epical with a strong foundation to further developing the company's operations and profitability.
Importantly, this acquisition will not impact existing customer relationships or the personnel at Epical. Our team of 400 experts remains dedicated to helping clients transition towards data-driven business. We continue to see responsible use of data as a powerful tool for creating positive change in the world, and our purpose to create a future we can all trust.
KPY press release:
Tietokeskus and Enfo to join forces and become largest domestic company in the IT sector
Osuuskunta KPY (”KPY”) and IT service company Tietokeskus Finland Oy (”Tietokeskus”) have signed a contract 29.10.2024, in accordance with a full buyout of KPY subsidiary, Enfo´s shares by Tietokeskus. In connection with the arrangement KPY is committed to acquire the shares of Enfo’s consulting business, Epical. KPY continues as the majority share holder of Epical and offers the possibility for the current Enfo shareholders to invest in Epical.
Tietokeskus and Enfo are combining their strengths through a share transaction, and as a result, the largest domestic IT service provider is formed, employing 800 experts around Finland. The combined revenue of the companies is approximately 200 million euros. The customer segments of Enfo and Tietokeskus complement each other, and the unification will expand the joint service offering. Both companies operate nationwide throughout Finland, at 17 locations in total in the future. The commitment to local presence will also be maintained in the future."
The completion of the acquisition is subject to the approval of the Finnish Competition and Consumer Authority. The acquisition means a full buyout of Enfo´s shares by Tietokeskus, Enfo’s current long-term majority owner Osuuskunta KPY will become a minority owner of Tietokeskus, holding a stake of approximately ten per cent. Vaaka Partners will continue as the majority owner of Tietokeskus. This supports the Momentum-strategy of KPY.
”We see the arrangement as an important part of implementing our group’s strategy and strengthening its structure. The arrangement provides financial flexibility to execute our Momentum strategy, where our ownership aims for long-term growth, development, and value appreciation in collaboration with other owners. Acting as a minority investor is a key component of our strategy. The merger supports this development," states the CEO of KPY Group Anssi Lehikoinen.
”KPY has been the majority owner of Enfo for almost 20 years, and we are proud of the long-term development journey of its IT service business. Now is the time for its next stage of growth. Enfo’s consulting and IT service businesses have significant expertise and potential, and we see opportunities to increase their owner value. We believe that the merger will enable the development of IT services on a broader scale”, continues Lehikoinen.
Lehikoinen estimates that the arrangement will also provide Epical with a strong foundation to continue developing the company's operations and profitability: 'We see that Epical offers significant long-term value creation opportunities.” In KPY's view, this arrangement is in the interest of Osuuskunta KPY’s and Enfo’s owners as well as Enfo, Epical and their personnel.
The parties have agreed that the purchase price is not public. The funds obtained from the arrangement will be directed toward correcting the financial position of the Enfo Group. The acquisition will not affect existing customer relationships.
KPY, CEO, Anssi Lehikoinen, tel. 050 328 2648, anssi.lehikoinen@kpy.fi
