Adelis-backed AddPro to merge with Svensk IT Funktion

Following the merger, Adelis will continue as controlling shareholder in Malmö-headquartered AddPro with the same ownership position in the new group. The founders and management team of both AddPro and ITF will also retain their stakes.

The transaction was financed by bank debt and the selling shareholders of ITF reinvesting in the new group.

The two IT businesses operate in different geographical markets in Sweden and, once merged, expect to strengthen their services across southern Sweden in areas such as Stockholm, Gothenburg and Malmö.

When combined, the business operations are expected to achieve sales of around SEK 900m for 2018 with a combined staff of 300.

Prior to the merger, AddPro employed a staff of 200 and projected a turnover of SEK 300m for 2017.

Previous funding
Adelis bought a majority stake in AddPro in June 2017. It owns slightly more than 50% of the business, with the remainder held by the founders and management team. The company planned on using the capital to expand within the Swedish market as well as increase its service development.

The deal was made using capital from Adelis's maiden fund, Adelis Equity Fund I.

Company
Founded in 1999 and headquartered in Sundbyberg, ITF offers IT services and information management products. In a statement, the company said it expected to reach sales of SEK 500m for 2018. ITF employs a staff of around 100, of which 85% are technical specialists.

People
Adelis Equity Partners – Joel Russ (investment professional).
AddPro – Nicklas Persson (CEO).
Svensk IT Funktion – Nicklas Henriksson (CEO).

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• Topics
• Portfolio management
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• Adelis Equity Partners