Verdane acquires four companies from eEquity for SEK 150m

As part of the transaction, Verdane will inject additional growth capital into the companies, namely WhiteAway, Caliroots, Parelle/Eleven and Royal Design. In total, around SEK 60m will be divided between all companies excluding WhiteAway. Verdane will also take a seat on each company's board.

The fresh capital will be used mainly for marketing, to increase the product offering and for increasing management's competence.

eEquity is divesting a portion of its holdings in the companies. This deal is the Swedish e-commerce investor's first exit since the fund's inception in 2010. eEquity is a shareholder in 11 Nordic e-commerce companies.

Verdane has worked with internet retailers since 2005 and the acquisition will increase its internet retail portfolio to 20 holdings. Verdane's current portfolio includes EasyPark, Dolphin Software and Mathem. This is Verdane's 20th portfolio transaction over the last 10 years.

The two parties have known each other since 2006. Verdane's Staffan Mörndal sourced the deal through proprietary networks. Negotiations started in April 2013 and ended on 23 August 2013.

The companies have underlying debt but this transaction did not involve additional leverage. Verdane has a very active pipeline in the coming months, according to the GP.

Company
Founded in 2003 and based in Aarhus, WhiteAway is an internet retailer of household appliances in the Nordic countries, with a reported annual turnover of close to SEK 900m and 82 employees.

Also founded in 2003 and based in Stockholm, Caliroots is a streetwear internet retailer. The company has an annual turnover of close to SEK 100m following its acquisition of andMotion, which occurred in connection with the transaction. Caliroots has 16 employees.

Parelle/Eleven is a group of two Swedish companies that merged before the summer. The newly formed entity, which has an annual turnover of approximately SEK 130m and 32 employees, sells beauty products online and in 20 Swedish franchise stores.

Founded in 2003 and based in Kalmar, Royal Design is a kitchenware, home decor and furnishings internet retailer with an annual turnover of around SEK 150m and 37 employees.

People
Staffan Mörndal is a partner at Verdane. Magnus Wiberg is a partner at eEquity.

Advisers
Equity – Westermark Anjou (Legal); Andulf Advokat (Legal); Ernst & Young (Financial due diligence); Advince (IT due diligence); Logent (Operational due diligence).

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