FINLAND – Sponsor Capital acquires CapMan’s stake in Pretax

The deal is expected to have an approximate EUR 1.5m impact on CapMan's results for 2010 due to carried interest income received from the Finnventure Fund V. According to CapMan, the Pretax investment has proved to be a 'very good one' for investors.

Pretax Oy was founded in 1987 by a consortium comprising several Finnish companies specialising in financial administration services. Pretax provides a service facilitating the electronic circulation of purchase accounts for small and medium-sized companies. The payroll administration unit of Pretax produces some 37,000 salary payments monthly for companies of various sizes.

In 2000, CapMan made a FMk 20m investment in Pretax, acquiring a 25% stake in the company. The initial deal was followed by add-on investments from CapMan. The funds were committed from Finnventure Fund IV, Finnventure Fund V and the Finnmezzanine Funds III A, B and C. In 2002, the company secured a EUR 10m second round of financing from a consortium of investors led by 3i.

Since CapMan's original investment, Pretax has expanded from Finland into the other Nordic countries, Russia and the Netherlands. The company employs close to 1,400 people across seven countries. Pretax expects to record net sales of approximately EUR 101m for 2009, growing thirty-fold since 2000.

The exit deal is expected to be completed by the end of the first quarter this year, and is still subject to customary closing conditions.

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• Topics
• Buyouts
• Nordics