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.
About Verdane
Verdane is a specialist growth investment firm that partners with tech-enabled and sustainable European businesses. Verdane can invest as a minority or majority investor, either in single companies or through portfolios of companies, and looks to deploy inside two core growth themes; digitalisation and decarbonisation.
Verdane funds hold over €6 billion in total commitments and have made over 400 investments in fast-growing businesses since 2003. Verdane’s team of over 140 investment professionals and operating experts, based out of Berlin, Munich, Copenhagen, Helsinki, London, Oslo and Stockholm, is dedicated to being the preferred growth partner to tech-enabled and sustainable businesses in Europe.
Verdane is also a certified B Corporation, the most ambitious sustainability accreditation globally. The firm only backs businesses that pass its 2040 test, which indicates whether the company can thrive in a more sustainable future economy.
Verdane is partly owned by the Verdane Foundation, which is focused on two areas: climate change and more equitable and inclusive local communities.
More info: www.verdane.com
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