Verdane Capital V sells Caretech AB to Doro AB
Stockholm — Doro AB has agreed to acquire Caretech AB from Verdane Capital V. During the fund’s ownership period, revenues have grown more than fourfold and the fund is set to make over 3.5 times its cost on the investment.
Caretech AB is the Nordic market leader within digital care solutions and services for elderly. The company has around 100 employees and is headquartered in Kalix, Sweden. Verdane Capital V acquired Caretech in 2006 and during Verdane Capital V’s ownership, Caretech has grown revenues fourfold. Verdane Capital Advisors have helped move Caretech’s business model from hardware sales to subscription and rentals, such that 65% of revenues are recurring in 2014.
“Caretech has built a really strong position in its niche, which this transaction clearly demonstrates. Doro is an excellent buyer, whose focus on mobile care really complements Caretech’s focus on safety and comfort for elderly users” comments Göran Strandberg, Partner at Verdane Capital Advisors.
Caretech’s solutions and services enable elderly to independently live in their homes longer and more safely. Caretech offers tele assistance in the Nordics which is fully compatible with the newly adopted IP based standards in the sector and runs a monitoring centre after the acquisition of Svenska Trygghetsjouren AB in 2011. Through this centre, Caretech takes care of 60 000 users on behalf of municipalities in Sweden and Norway.
“We want to grow within the Telecare sector which has synergies with our current core business of senior mobile phones. The acquisition of Caretech accelerates the development of our offering within Telecare. Caretech’s integration within Doro will be a big step in building a global Telecare company.” comments Doro´s CEO Jérôme Arnaud. “In addition, Caretech´s strong recurring services business model will improve our margins”.
Caretech CEO, Ulf Lindstén adds: “Verdane Capital V has been a professional owner who has ensured that we have had the resources necessary for rapid growth and who has helped us realise the ambitious plan to build a market leader in digital care solutions. With Doro as our owner we now see possibilities to grow our international offering at a faster pace. Doro’s Mobile Telecare offering including smartphones is a good platform to add-on services for Caretech.”
Caretech will in 2014 complete a strong turnaround with high sales growth momentum and improved margins. As a result, Caretech currently has an annual growth rate of around 30% and estimated revenues of around SEK 150 million and an EBIT margin of around 20% for 2015. Caretech will operate as a Business Area within Doro Group.
Verdane Capital Advisors is the Nordic market’s largest and most successful independent manager of secondary direct funds. Verdane funds have €700m in committed capital and are focused on buying Nordic portfolios of direct investments in attractive sectors such as energy, ICT and general industries. The funds will also consider individual investments in selected growth-stage companies. Since 2003, the funds advised by Verdane Capital Advisors have acquired 23 portfolios with stakes in over 250 companies. Verdane has invested in companies such as Mathem, BytHjul, Resman and Wireless Maingate. Former holdings include Coding Technologies, Chipcon, DIBS, Nacre, Reslink, Reslab and Tradedoubler. For more information, please visit www.verdanecapital.com
Verdane Capital Advisors
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