Innofactor sells Innofactor Prime business to Total Specific Solutions

Espoo, March 31, 2021

Innofactor sells its resource management software solution business, Innofactor Prime, to Total Specific Solutions (“TSS”). The transaction takes effect on 1.4.2021. TSS expands its position in the region with now four companies in Finland and eleven in the Nordics.

Innofactor Prime is a flexible solution that enables parishes and local governments to optimize and effectively manage their organization's resources. The solution features various tailored and ready-made modules ranging from invoicing, calendar management, graveyard management, ERP to e-Services, and more. It is cloud-based, giving users the freedom to work from any location and using any type of device.

The transaction has a positive net effect of about 2,6 million euros to Innofactor first quarter 2021 operating margin (EBITDA) and estimated about 2 million euros negative effect for 2021 net sales. Innofactor continues to provide managed services for purchased Prime business of TSS.

The transaction has no effect on Innofactor’s outlook for 2021 where Innofactor’s net sales and operating margin (EBITDA) in 2021 are estimated to increase from 2020, during which the net sales were EUR 66.2 million and operating margin was EUR 7.2 million. Innofactor’s Board of Directors will decide later about the use of the sales price.

Sami Ensio, Founder, President and CEO of Innofactor: “We were reviewing our offering portfolio and Prime business no longer fit our strategic core focus to deliver Microsoft-based B2B solutions and services across the Nordics. In TSS, we found a new owner with a focus on country-specific mission-critical software. Prime is well aligned with this focus and we feel very confident about its future as an independent business unit of TSS. We see this as the best outcome for Prime customers and employees, as well as Innofactor shareholders. Personally, this was big decision for me since Prime has been part of Innofactor for over 20 years from the first days of the company. I am extremely happy that we found a good home for Prime at TSS.”

Tiina Korolainen, Managing Director of Prime business at TSS: “This transaction is a very positive step forward for our clients, personnel and Prime business. My team and I are eagerly looking forward to this new phase. Prime business will continue as an independent company as a part of TSS Finland and TSS’s international network. There will be no changes in customer relations due to this transaction and Prime team’s employees continue on their roles also in the future.”

Mika Savolainen, General Manager at TSS: “We are excited to welcome a new company to TSS Finland. The Prime solution is used by clients in several verticals, but their main focus on the vertical of religious organizations in Finland. In this vertical they are one of the leading companies in Finland. The solution has been developed in close cooperation with their clients. This fits the TSS vision on best practices for software companies. I am looking forward to working with Managing Director Tiina Korolainen and her team.”

More Information:

Sami Ensio, President and CEO

Innofactor Plc

Tel. 050 584 2029

Innofactor

Innofactor is the leading driver of the modern digital organization in the Nordic Countries for its about 1,000 customers in commercial, public and third sector. Innofactor has the widest solution offering and leading know-how in the Microsoft ecosystem in the Nordics. Innofactor has over 500 enthusiastic and motivated top specialists in Finland, Sweden, Denmark and Norway. In 2016–2020, the annual growth of Innofactor's net sales has been approximately 8.3%. The Innofactor Plc share is listed in the technology section of the main list of NASDAQ Helsinki Oy. #ModernDigitalOrganization #PeopleFirst #CreatingSmiles

Prime

Prime is the solution and business that provides the resource management solution of Innofactor, the Modern Digital Organization in the Nordics for Microsoft based B2B solutions. Prime focuses primarily on religious organizations but has other public and private companies in their portfolio as well. Currently Prime is based in Espoo, Finland. More information on the website.  

Total Specific Solutions (TSS)

Total Specific Solutions is a leading European provider of IT business solutions and consists of independent business units that deliver products and services to their specific segments. This market expertise is based on decades of experience. TSS is part of Topicus.com Inc, a public company listed on the Canadian TSX Venture Exchange. Topicus.com Inc is part of the ecosystem of Constellation Software Inc (CSI), a global provider of vertical business solutions. More information can be found on the website: .