FSN readies IT consultancy Nordlo for exit

Gustav Hoejmark-Jensen , Auri Aittokallio and Kasper Viio
31 March 2022

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Private equity firm FSN Capital Partners is looking to exit its Sweden-based IT consultancy asset Nordlo Group AB, having mandated advisors including Danske Bank, three sources familiar with the situation said.

FSN Capital has also mandated ABG Sundal Collier, alongside Danske Bank, a fourth source familiar and a sector banker said. White & Case has the legal mandate, the fourth source added.

Still in the prelaunch phase, information memoranda are expected before the end of this month, one of the sources familiar said, adding that the business is being marketed off EBITDA between EUR 25m and EUR 30m.

An IPO was the main exit route, one of the sources and a sector banker said. But the process is now a dual track, two of the sources and a second sector banker said. Potential buyers may struggle to see what is unique about the asset, the second sector banker added.

Similar businesses include Goldman Sachs-backed Advania and Intermediate Capital Group-owned Iver, a third sector banker not involved in the process said, adding that Advania could potentially find logic in acquiring Nordlo. An international player could also look, the banker said.

In December, Advania acquired UK IT asset Content+Cloud, as reported, and local media have reported that Advania is looking to grow by further acquisitions. Iver, formerly owned by EQT, has also been acquisitive this year, snapping up Mjukvarukraft, a Swedish IT consultant, and Intiro, a Swedish IT company in February 2022.

Nordlo's most recent bolt-ons include the February 2021 acquisition of Swedish IT group Acon, as reported, as well as the acquisition of Norwegian IT company Appex Operations in August 2020, as reported.

Nordlo offers IT and digitisation services in Sweden and Norway. The core business consists of managing IT services for small and medium-sized companies. In 2021, Nordlo's net sales increased by approximately 25% from a year earlier, to just over SEK 1.5bn (EUR 145m), according to its website. The company has 750 full-time employees in 41 offices and more than 5,000 customers in Sweden and Norway.

On March 23, FSN Capital appointed Björn Ivroth as new chairman of Nordlo Group and Wiljar Nesse as new board member due to Lar Pettersson stepping down as chairman.

FSN Capital holds a 56% majority stake in the Nordlo Group, which was the result of a 2018 merger between Office IT Partners, Dicom, and Zetup, according to its website.

Nordlo, FSN Capital Partners, Danske Bank, ABG Sundal Collier and White & Case all declined to comment.