Nordic digital consultancy Sofigate lands growth investment

26 May 2021 2 min. read

Nordic digital transformation consultancy Sofigate has roped in an investment from private equity with the aim of accelerating its growth ambitions.

Founded in 2003 in Finland, Sofigate currently has a team of around 600 business and technology consultants working from offices in Finland, Sweden and Denmark. They currently generate revenues of around €100 million, however, in the plans of company CEO Sami Karkkila, that number should take-off to €500 million by 2025.

“We’ve grown fivefold in the past five years,” he said. “Maintaining this momentum requires both rapid organic growth and acquisitions. Bringing on board CapMan Growth and Mandatum Private Equity will enable us to realise this vision.”

Nordic digital consultancy Sofigate lands growth investment

Alongside funding potential deals (the first targets are reported to be on the radar), Sofigate will use the added capital to strengthen its leadership team, and professionalise its operations. The firm also plans to expand its international footprint, without revealing more details on go-to markets. 

Financial details of the deal have not been disclosed – however, known is that financial sponsors now own “a little less than one-fifth of Sofigate” said Karkkila. The rest is owned by LähiTapiola, the company’s founders, and “a significant number” of the firm’s employees.

The deal comes at a time of growing private equity interest in the digital transformation scene, on the back of the massive shift towards digital working triggered by the global pandemic. According to a study by McKinsey & Company, Covid-19 has accelerated digital transformation by seven years, lifting demand for providers of digital consultancies and technology providers.

In the Nordics, Sofigate has been one of the main beneficiaries of this pent-up demand, and according to investors Juha Mikkola (CapMan) and Alexander Antas (Mandatum), the firm is well positioned to tap into opportunities. We see great potential in the development of Sofigate’s operations on the path the company has chosen… Sofigate has a strong position in Finland and significant growth potential in other Nordic countries.”

In related consulting deal news in the Nordics, Deloitte last week acquired Danish digital supply chain consultancy Syncronic, Finnish IT consultancy Fourkind was acquired by ThoughtWorks, and also in the first quarter Swedish operations consultancy Valcon teamed up with partner First Consulting and investor Waterland to acquire Netherlands-based data science specialist Viqtor Davis.