Polaris said June 20 that it has agreed to buy ProData Consult. Financial terms weren’t announced. ProData, of Denmark, is an independent IT consultancy focused on business and IT consultants.
Polaris invests in IT consultancy ProData Consult
Copenhagen – 20 June 2018 – Polaris has entered into an agreement to acquire a majority shareholding in ProData Consult, Denmark’s leading independent IT consultancy focused on business and IT consultants. Over 15 years, ProData Consult has generated an average annual growth in excess of 20%, and the Group has activities in Denmark, Norway, Sweden, Poland, Germany and the Netherlands. The investment is the sixth in Polaris’ fund IV.
Following growth of more than 30% in 2017, ProData Consult reached revenue of DKK 910 million based on the company’s core business of providing high-end business and IT consultants to a series of acknowledged clients, in particular within financial services. ProData Consult’s successful Polish ‘nearshoring-as-a-service’ solution (‘NaaS’), which provides Scandinavian clients access to Polish IT consultants with strong specialist competencies, continued the strong development in 2017 with growth exceeding 40%. The Group’s leading position in the Danish market and the positive development in the core business as well as the rapidly growing ‘NaaS’ business area will be sustained, while systems and processes will be strengthened with Polaris as a joint owner, allowing ProData Consult to claim a leading position in the North European market.
”We have more than doubled revenue in ProData Consult over the course of the last three years, and we have simultaneously been able to expand our business and improve client satisfaction to the highest level ever. We see great opportunities ahead in our markets based on our competent employees as well as robust processes and IT systems, ensuring the perfect match between our clients and consultants. We also see great prospects in our unique offering allowing Scandinavian companies to benefit from a highly competitive combination of excellent quality and scalability with our Polish ‘NaaS’ solution. We have had a good and thorough dialogue with Polaris and are looking forward to drawing on their extensive experience from similar growth companies in a partnership aiming to further professionalize the company and fully releasing the potential in the coming years,” says Søren Rode, CEO of ProData Consult.
The market for IT services in the countries currently served by ProData Consult totals around DKK 100 billion with underlying annual growth rates of 3-5%. In this market, the Group operates within the areas of freelance consultancy services and ‘nearshoring’, which are currently seeing progress and furthermore contribute to reducing the company’s sensitivity to economic cycles. ProData Consult is thus well-positioned to leverage the increasing prevalence of the gig economy and the preference of highly qualified consultants for working freelance or through their own business. The partnership between ProData Consult and Polaris will generate the best foundation for pursuing the opportunities in the North European market and Poland with a view to ensure controlled and profitable growth in the coming years.
”We have been keeping an eye on ProData Consult’s strong development and their innovative approach to the market during a longer period, convincing us that the company has a large development potential. We will do our part to support the growth and generate an even stronger business by leveraging our experiences and strategic knowhow from other growth companies, focusing on systematizing sales and strengthening processes and systems,” says Jan Johan Kühl, Managing Partner at Polaris.
ProData Consult’s management continues, and the current ownership – comprised of leading employees and board members – as well as key employees will co-invest in the company alongside Polaris. The parties have agreed not to disclose the purchase price.
About ProData Consult (www.prodata.dk)
ProData Consult is Denmark’s leading independent consultancy focused on business and IT consultants. The Group provides high-end business and IT consultants to its clients and has a large network of competent and experienced IT specialists. ProData Consult is headquartered in Copenhagen with branches/subsidiaries in Aarhus, Aalborg, Norway, Sweden, Poland, Germany and the Netherlands. The company was founded in 1994 and has been owned by a group of leading employees and board members since.
About Polaris (www.polarisequity.dk)
Polaris is a Danish/Swedish private equity firm headquartered in Copenhagen, which invests in well- established small and medium sized companies in the Nordics. Since 1998, Polaris has raised 4 funds and obtained capital commitments of EUR 1.2bn. Polaris’ focus is to invest in companies with growth and development potential and typical revenue of EUR 25-200 million. To date, Polaris has invested in 36 companies and completed more than 60 add-on investments. Polaris currently owns 12 companies with total revenue of EUR +1bn and 5,000 employees.