Talenom Plc, Stock exchange release, 1 September 2020 at 11:50 EEST
Talenom reinforces its business in Sweden and expands to Gothenburg and Malmö with the acquisition of Frivision AB, a company focusing on small customer segment
Talenom Plc has made an agreement with the owners of the Swedish accounting company Frivision AB to purchase the entire share capital of the company. The acquired company will support Talenom’s strategic goal of expanding its business into the small customer segment. At the same time, the transaction will strengthen Talenom’s position in the Swedish market in new locations – Gothenburg and Malmö. In the short term, the share transaction will not have any significant impact on Talenom’s financial position or future outlook.
Frivision AB, a provider of accounting services focusing on small customer segment, is an authorised accounting firm with 20 employees based in Stockholm, Gothenburg and Malmö. Frivision Group consists of the parent company, Frivision AB, and seven wholly-owned subsidiaries. The Group’s net sales in the accounting period that ended on 30 April 2020 amounted to SEK 15.1 million (EUR 1.4 million), with year-on-year growth of 16.2%. EBITDA in the accounting period was approximately SEK 60 000 (EUR 6 000) or 0.4% of net sales.
The transaction price is SEK 15.1 million (EUR 1.4 million), of which SEK 7.55 million (EUR 0.7 million) will be paid in the form of new shares in Talenom Plc, subscribed under a directed share issue for the owners of Frivision. The remainder of the transaction price will be paid in cash and financed with the liquid assets of Talenom Plc. In addition to the transaction price, the seller has the opportunity to receive an additional purchase price of SEK 6.4 million (EUR 0.6 million) at maximum if the financial targets set for the acquired business are reached.
“I am highly satisfied to have Frivision’s team to strengthen our growth in Sweden in new locations and to support the development of our small customer segment, as both of these are strategically important development areas for us. Growth in our operations in Sweden will soon enable us to localise our own technology. We warmly welcome Frivision’s personnel and customers to Talenom. We share a desire to help entrepreneurs to experience the joy of entrepreneurship. We have a common vision of future development in the accounting sector, and this will form a strong foundation on which we can build the future together,” says Otto-Pekka Huhtala, Talenom’s CEO.
“Frivision’s passion has always been to develop the small customer concept for accounting sector, taking into consideration the unique characteristics of the segment. We have already had plenty of success in this, but we need the best technology in the sector and additional resources in order to realise our vision and accelerate growth. Talenom has these resources, and it also shares our outlook for the future of the small customer segment. That is why this acquisition was now such a natural fit,” says Tobias Ryberg, Frivision’s founder and CEO, who will continue as a Talenom employee.
The subscribed 83,362 new shares in the share issue related to the transaction will be registered in the Finnish Trade Register approximately on 3 September 2020. After the registration of the new shares, the number of Talenom Plc shares is 43,146,435 shares in total. The number of shares issued corresponds to 0.19% of all Talenom Plc shares outstanding before the share issue. The new shares will carry shareholders rights as of their registration day. The shares issued in the share issue will be later admitted to trading on the official list of Nasdaq Helsinki Oy.
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Talenom Plc is an accounting firm established in 1972. Talenom offers a wide range of accounting services as well as other expert and advisory services to support its clients’ business. The company has its own software development and it provides its clients with electronic financing tools.
Talenom Group’s net sales in 2019 amounted to EUR 58.0 million, with an increase of 18.6% compared to 2018. Talenom has a history of strong growth – the average annual increase in net sales was approximately 15.7% between 2005 and 2019.