Klar Partners acquires Empower IM Oy

Harriet Matthews
01 July 2020

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Klar Partners has completed its first deal, acquiring Finland-based smart energy company Empower IM in a carve-out from its parent company Empower.

"It was an exclusive process and it was done via a carve-out," said Fredrik Brynildsen, investment professional at Klar Partners. "Empower had been looking for a solution for some time. We have experience in this area and we were well positioned to find a solution."

According to a statement, Klar plans to help the company strengthen its market position and build on international growth opportunities. "There will be a carve-out transition to help the company stand on its own legs. This will include the rebranding in due course," said Brynildsen.

Debt was provided by a local bank.

Klar invests in companies based in the DACH, Nordic and Benelux regions, targeting businesses with an EV of €50-300m and revenues of €50-500m.

"We have a very strong investment pipeline and expect to execute our next deal in the next few months," Brynildsen told Unquote. "We are currently focused on businesses in resilient markets – this investment serves utilities and there was no impact from the coronavirus crisis between signing and closing."

Klar is understood to be on the road for its debut fund. "The transaction was executed by funds advised by Klar on behalf of a number of institutional investors," Brynildsen told Unquote. However, he declined to comment on fundraising activities or the firm's plans to raise further capital.

Company
Empower IM provides software for use in smart energy meters and utilities, as well as business process outsourcing services for smart grids and energy market functions. The company is based in Helsinki and was formerly part of Empower, which was founded in 1988 and has a turnover of €252.7m. Empower IM has 250 employees and reported 2019 revenues of €30m.

People
Klar Partners – Fredrik Brynildsen (investment professional).
Empower IM – Håkan Tylen (incoming CEO).
Empower – Mikko Vaahersalo (CEO).

Advisers
Equity – Wigge (legal); Dittmar (legal); EY (financial due diligence); Qvartz (commercial due diligence); Bain (commercial due diligence).