Talenom implements its growth strategy by acquiring two accounting firms in Sweden and expands to Växjö
Talenom Plc, Stock exchange release, 10 December 2020 at 14:30 EET
Talenom implements its growth strategy by acquiring two accounting firms in Sweden and expands to Växjö
Talenom Plc has agreed to acquire the accounting firms Ekonomianalys KL AB and Persson & Thorin AB in Sweden. With these acquisitions, Talenom further strengthens its position in the Swedish market and expands its operations to a new municipality, Växjö. Talenom estimates that after these acquisitions, its business operations will be on a sufficiently broad footing to enable it to profitably localise and introduce its own software in Sweden. Talenom’s stronger foothold in Sweden also supports its organic growth in the new areas of Växjö and northwestern Stockholm.
The combined net sales of the acquirees in the period of last 12 months was around 3.5 million euros (previous 12-month comparison period: 2.8 million euros) and their operating profit was around 0.3 million euros (previous 12-month comparison period: 0.5 million euros).
The acquired businesses will be transferred to Talenom on 4 January 2021 and thus the acquisitions have no effect on the guidance for 2020. The transactions will be carried out by acquiring the entire share capital of the companies and paid in the form of new Talenom Plc shares subscribed for in a directed share issue and with cash. The combined total transaction price is 2.8 million euros and combined possible additional purchase price if operational and financial targets are reached, is 2.2 million euros at maximum.
“I’m truly pleased that Ekonomianalys and Persson & Thorin will strengthen our growth in Sweden. During our negotiations, we arrived at a strong shared vision of further transforming the Swedish accounting sector in the direction of consultancy and digitalising routines to free up time for customers. At the same time, we will become strategically large enough to enable us to localise our own systems. I warmly welcome these new accounting firms to Talenom,” says Otto-Pekka Huhtala, CEO of Talenom.
“Acquisitions are a key element of our strategy and our goal of developing Talenom into a strong international player. We’re gaining robust conceptual expertise and are expanding geographically in Sweden. Our business is making the leap into a size class that enables us to tap into substantial economies of scale,” says Tuomas Iivanainen, Director, International Business at Talenom.
Financial information on the acquirees and the purchase prices are shown in the table below:
| 1,000 euros | Ekonomianalys KL AB | Persson & Thorin AB | Total | |||
| Results | 9/19-8/20 | 9/18-8/19 | 9/19-8/20 | 9/18-8/19 | 9/19-8/20 | 9/18-8/19 |
| Net sales | 2,307 | 1,672 | 1,151 | 1,082 | 3,459 | 2,755 |
| Operating profit | 130 | 198 | 195 | 260 | 325 | 457 |
| Opening balance sheet of the transferring company, estimate | 4.1.2021 | 4.1.2021 | 4.1.2021 | |||
| Goodwill and other intangible assets | 0 | 0 | 0 | |||
| Other assets | 567 | 332 | 899 | |||
| Total assets | 567 | 332 | 899 | |||
| Equity | 71 | 200 | 271 | |||
| Non-current liabilities | 0 | 0 | 0 | |||
| Current liabilities | 496 | 132 | 629 | |||
| Total shareholders' equity and liabilities | 567 | 332 | 899 | |||
| Number of employees | 27 | 15 | 42 | |||
| Transaction price in cash | 482 | 609 | 1,091 | |||
| Transaction price in shares | 1,125 | 584 | 1,709 | |||
| Total transaction price | 1,607 | 1,193 | 2,799 | |||
| Additional purchase price at max. | 1,558 | 682 | 2,240 | |||
The figures have been converted from SEK to EUR on 9 December 2020, exchange rate EUR 1 = SEK 10.27.
The 136,807 new Talenom Plc shares subscribed for in the directed share issue related to the transaction will be registered in the Trade Register approximately on 7 January 2021. The total number of Talenom Plc shares is 43,351,587 shares following the registration of the new shares. The number of new shares issued corresponds to approximately 0.3% of all Talenom Plc shares outstanding before the share issue. The new shares will carry shareholders rights as of their registration day. The shares issued in the share issue will later be admitted to trading on the official list of Nasdaq Helsinki Oy.
TALENOM PLC
BOARD OF DIRECTORS
Further information:
Otto-Pekka Huhtala
CEO, Talenom Plc
4
Talenom Plc is an accounting firm established in 1972. Talenom offers a wide range of accounting services as well as other expert and advisory services to support its clients’ business. The company has its own software development and it provides its clients with electronic financing tools. Talenom Group’s net sales in 2019 amounted to EUR 58.0 million, with an increase of 18.6% compared to 2018. Talenom has a history of strong growth – the average annual increase in net sales was approximately 15.7% between 2005 and 2019.
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