On 28th September 2017, INVL Technology, a company that invests in IT businesses, through 100 percent controlled Finnish company acquired 77.35 percent shares of the Finnish cyber security company Deltagon Group Oy. The price of the acquisition is EUR 4.882 million.
The deal is partly financed by the DNB bank in Lithuania. The bank has provided INVL Technology with up to EUR 2.3 million loan for the period of 4 years.
The enterprise value of the acquired Deltagon Group Oy is EUR 5.2 million. In total, 100 percent shares of Deltagon Group Oy, could cost up to EUR 6.312 million.
Kazimieras Tonkūnas, Vilius Benetis and Vytautas Plunksnis were appointed to the Management Board of Deltagon Group Oy. Current CEO of Deltagon Group Oy Jari Holmborg will remain in his position and continue to lead the company, where he has been working for over 10 years.
Deltagon Group Oy is a Finnish cyber security company that develops information security solutions for electronic communication and electronic services across a wide range of industries from the financial sector to public administration – and everything in between.
Revenue of Deltagon Group Oy in 2016 amounted to EUR 2.641 million or 15 percent more than in 2015 (EUR 2.295 million). Net profit of the company amounted to EUR 551 thousand in 2016 (6.6 percent more than in 2015). In the first half of 2017 Deltagon Group Oy revenue increased by 14.8 percent to EUR 1.458 million.
INVL Technology, a company that invests in IT businesses, acquired 77.35 percent shares of Finnish cyber security company Deltagon Group Oy. The price of the acquisition is 4.882 million euro. The acquisition was completed on 28 September 2017 with payment for the shares. Kazimieras Tonkūnas, Vilius Benetis and Vytautas Plunksnis were appointed to the Management Board of Deltagon Group Oy.
“Acquisition of Deltagon will strengthen INVL Technology cyber security portfolio. It is a steadily growing company with proprietary intellectual capital, strong management team, regular revenue stream, loyal customers in a mature market, and potential for expansion. Deltagon and the other INVL Technology managed cyber security company NRD CS will supplement each other’s business model, consolidate intellectual capital, the companies will be able to expand their current market reach and work together in Northern Europe and frontier markets”, commented Kazimieras Tonkūnas, Managing Partner for UTIB INVL Technology at INVL Asset Management.
Current CEO of Deltagon Group Oy Jari Holmborg will remain in his position and continue to lead the company. Mr. Holmborg has over 30 years of experience in the technology sector, and he has been working at Deltagon for over 10 years. Before starting in the executive vice-president position at Deltagon in 2006, Mr. Holmborg was the CEO of Mirasys, and before that he served as the senior vice-president of F-Secure.
“Deltagon will remain a Nordic company with R&D and customer service in Finland, and our current customers will continue receiving the same quality of service they are used to. In addition, joining INVL Technology and being able to work closely with its managed companies will allow Deltagon to expand into other markets and offer our existing customers even more complex cyber security solutions”, commented the CEO of Deltagon Group Oy Jari Holmborg.
Deltagon Group Oy has offices in Helsinki, Finland and Stockholm, Sweden. Company serves customers in Scandinavia and the Baltics.
INVL Technology will offer to buy the remaining shares of Deltagon Group Oy from remaining shareholders of the Company, paying the same price per share as for the controlling stake. Total equity value of the company is 6.312 million euro and enterprise value of the company taking into account cash & equivalents is 5.2 million euro.
The deal is partly financed by the DNB bank in Lithuania that has provided INVL Technology with up to 2.3 million euro loan for the period of 4 years. The acquisition was completed through 100 percent controlled Finnish company, established in September 2017.
Deltagon Group Oy business model is subscription based invoicing. Revenue of Deltagon Group Oy in 2016 was 2.641 million euro or 15 percent more than in 2015 (2.295 million euro). Net profit of the company amounted to 551 thousand euro in 2016 (6.6 percent more than in 2015). In the first half of 2017 Deltagon Group Oy revenue increased by 14.8 percent to 1.458 million euro. Sales of security products grew by over 15 percent on average for the last 5 years.
Deltagon Group Oy has patented technology, company’s main products ensure the information security of e-communication and e-services in organizations. They include an e-mail encryption solution Deltagon Sec@GW, secure information sharing solution Deltagon collabRoom, secure form platform Deltagon secureForms, and electronic signature solution Deltagon secSigned. Deltagon Group is a trusted partner of various law, financial, health and government organisations that handle classified material. It is expected that Deltagon products will be especially relevant with the new European general data protection regulations to be implemented next year as well as for Critical Information Infrastructure Protection (CIIP).
INVL Technology is a closed-end investment company which invests in IT businesses. It is listed on the Nasdaq Vilnius exchange (INC1L). To date INVL Technology has invested in the Norwegian company Norway Registers Development AS with subsidiaries NRD UAB and Etronika UAB in Lithuania, Norway Registers Development East Africa Ltd in Tanzania, Norway Registers Development Rwanda Ltd in Rwanda, NRD Bangladesh Ltd in Bangladesh, and the associated company Infobank Uganda Ltd in Uganda. It has also invested in BAIP UAB with its subsidiary Acena UAB as well as NRD CS UAB and Algoritmu Sistemos UAB, all in Lithuania, Estonia’s Andmevara AS with its subsidiary Andmevara SRL in Moldova, and a company in Finland, established in September 2017.
The person authorized to provide additional information:
INVL Technology Managing Partner
e-mail [email protected]