A fund managed by Sponsor Capital is to acquire approximately the 30% holding in the Finnish financial management and payroll processing services company, Pretax Oy, owned by five funds managed by CapMan.
The Finnventure Fund IV, Finnventure Fund V, and the Finnmezzanine Funds III A, B, and C made their initial investment in Pretax in 2000, and was followed by add-on investments, largely for M&A purposes.
During CapMan’s ownership, the company has expanded from Finland into the other Nordic countries, Russia and the Netherlands.
The company currently employs close to 1,400 people in seven countries.
Commenting on the exit, CapMan Senior Partner Olli Liitola, said: “We saw a good opportunity to take part in the changes reshaping the financial management of small and medium-sized companies by investing in Pretax, and be part of consolidation in the field and moves to leverage the potential of new technology in accounting.
“The company’s net sales have over thirty-folded during our ownership period. After a relatively long holding period the exit now announced was a normal step”.
According to CapMan, Pretax expects to record net sales of some €101 million in 2009.
Asko Schrey, the CEO of Pretax Oy and its largest owner, added: “We have been very satisfied with how Pretax has developed during the time CapMan has been involved with the company.
“Pretax is well-placed to continue seeking further growth, and the other major owners continue supporting the company.
“In order to secure the company’s growth it was a natural step forward to search a financial owner for CapMan’s share in Pretax”.
Sponsor Capital Oy is a Helsinki, Finland-based independent private equity investor which makes investments in medium-sized companies with established market position and predictable cash flow.
For the five funds managed by CapMan, the closing of the exit requires the completion of customary closing conditions and the transaction is expected to be completed by the end of the first quarter of 2010.