Verdane to sell Eniram to global leader in marine and energy markets
Helsinki — Verdane Capital VIII K/S (Verdane VIII), the largest shareholder in the Finnish software company Eniram Oy (Eniram), has agreed to sell all of its shares to Wärtsilä Oyj (Wärtsilä). During Verdane’s ownership period, the Company has changed its strategic direction and business model leading to 66% growth in recurring revenue and profitability.
Eniram is today the global market leader in offering energy management technology solutions to reduce fuel consumption and emissions for the maritime industry. Its solutions, ranging from single on-board applications to comprehensive fleet analysis, are installed in over 270 vessels, optimizing fuel consumption, increasing profitability and reducing harmful emissions. Eniram is headquartered in Helsinki, Finland, with operations in the UK, the USA, Germany and Singapore.
Verdane has worked closely with Eniram’s management team to outline its strategic direction, including a revised business and go-to-market model as well as refreshed the Company’s product roadmap. In announcing the transaction, Henrik Dahl, CEO and Co-founder of Eniram, commented: “Working together with Verdane has been very rewarding for us. Their level of professionalism and strategic understanding of value creation has been central in building what Eniram is today. During our cooperation, Verdane has given us confidence and support to build and execute our strategy to the fullest”.
During Verdane VIII’s ownership, Eniram has transformed from a provider of hardware and software systems with high upfront instalment costs, to a cash flow positive Software-as-a-Service (SaaS) business with a high share of recurring revenue. “The Eniram team has done a fantastic work executing on the strategy defined about two years ago. By leveraging its vast amount of data collected over several years, the Company is today able to offer world-class analytics as a service for its Tier-1 customers in the maritime industry. These initiatives have been essential in developing scalability ahead of the next phase of growth and speaks to the growth-oriented mindset across Verdane portfolio companies,” says Emanuel Johnsson from Verdane’s investment team and member of the Board of Eniram.
The Eniram award-winning solutions have attracted significant attention from blue-chip companies. In particular, Wärtsilä, global leader in advanced technologies and complete lifecycle solutions for the marine and energy markets, sees strong potential in its complementary offering. Together, they will enable customers to optimize their assets, improve predictability and boost real-time analytics. “Eniram has a very interesting technology roadmap ahead and it is therefore encouraging to see Wärtsilä as the new owner with its focus on marine digitalization”, says Johnsson.
Ownership of Eniram will be transferred to Wärtsilä with effect from 1 July 2016, and the deal value is announced to be €43m.
Working together with Verdane has been very rewarding for us. Their level of professionalism and strategic understanding of value creation has been central in building what Eniram is today. During our cooperation, Verdane has given us confidence and support to build and execute our strategy to the fullest.
Verdane Capital Advisors manages four active funds that hold approximately €700 million in committed capital. Since 2003, Verdane Capital funds have conducted 28 portfolio transactions, as well as a number of investments directly into single companies, which have led to ownership in over 300 companies. Verdane funds support companies that have high ambitions in software, consumer internet, energy and high-tech industries with flexible growth capital. Current and past fund holdings in the software sector include CRF Healthy Oy, Codenomicon Oy and inRiver AB. The funds are distinctive in that they can either purchase an entire portfolio, parts of a portfolio, or a single position, from a portfolio of unlisted assets. Verdane Capital Advisors has 22 employees working out of offices in Oslo, Stockholm, and Helsinki. For more information, please visit www.verdanecapital.com
Established in 2005, Eniram provides the maritime industry with energy management technology to reduce fuel consumption and harmful emissions. Created by experienced seafarers and technologists, Eniram’s solutions range from single onboard applications to comprehensive fleet analysis. They are used by small and large shipping companies on ships ranging from cruise liners, tankers, LNGs, container ships, bulkers and ferries. Eniram is headquartered in Helsinki, Finland and has subsidiaries in the UK, the USA, Germany and Singapore. Revenues exceeded €10m in 2015. For more information, please visit www.eniram.fi
About Wärtsilä Corporation
Wärtsilä is a global leader in advanced technologies and complete lifecycle solutions for the marine and energy markets. By emphasizing sustainable innovation and total efficiency, Wärtsilä maximizes the environmental and economic performance of the vessels and power plants of its customers. In 2015, Wärtsilä’s net sales totaled €5 billion with approximately 18,800 employees. The company has operations in over 200 locations in more than 70 countries around the world. Wärtsilä is listed on Nasdaq Helsinki. For more information, please visit www.wartsila.com