Acquisitions
we look for companies to maintain and develop
Acquisitions are an important part of Addtech’s strategy. We continuously evaluate both acquisitions of independent, profitable technology companies with market-leading niche positions, and small bolt-on acquisitions that may serve to strengthen the market positions and profitability of our existing companies. Over the financial year, eleven acquisitions were made, contributing with annual sales of about SEK 700 million.
Addtech owns around 120 independent subsidiaries and is a financially strong, well-established and committed owner. Each year, we acquire entrepreneur-led technology trading companies that support existing operations or bring in new product or market segments where the conditions are right for gaining leading niche positions. We hold on to our companies and develop them long term. New companies contribute with a presence on new sub-markets, and bring skilled employees with a strong entrepreneurial spirit.
SPECIALISTS IN ACQUISITIONS
In each acquisition process the company is evaluated according to a series of criteria that, when met, create good conditions for further development within Addtech. Acquired companies are expected to contribute to the Group’s profitability in both the short and long term and have good growth prospects. Addtech’s subsidiaries are generally wholly owned.
The route to a successful acquisition for both buyer and seller is rarely a rapid process. Giving the parties time to get to know each other reduces the risk of misplaced expectations. It also creates trust, which lays the foundation for the parties and employees to be satisfied with the outcome once the acquisition has been completed.
Over the years, Addtech has acquired and integrated more than 90 companies, and from these experiences a clear, successful process for integrating and developing the companies acquired has emerged. We set clear goals and provide tools for development and profitability.
| Acquisitions | 2017/2018 | 2016/2017 | 2015/2016 | 2014/2015 | 2013/2014 |
|---|---|---|---|---|---|
| Number of acquisitions | 11 | 10 | 10 | 9 | 5 |
| Acquired annual sales* | 698 | 503 | 643 | 540 | 299 |
| Number of employees | 171 | 129 | 161 | 140 | 87 |
| * Refers at the time of acquisition on a full-year basis. | |||||
NEW COMPANIES DEVELOP WITHIN ADDTECH
Many privately-owned companies want to sell to Addtech so they can maintain their decentralised responsibility, but also to gain support for development via an active, long-term owner. Each business area includes a number of niche business units. As a result, many entrepreneurs see a natural position where their companies could fit within the Group. The year’s acquisitions have strengthened our business areas and have contributed to earnings growth. As our markets are changing, opportunities continue to be created for developing new business segments. At the same time Addtech is gradually moving its positions forward.