Exits seem to be picking up pace, despite many sources calling the environment less than ideal. This morning we start with Triton Partners agreeing to sell a Finnish B2B digital marketing business.
We then look into Exponent establishing an office in Dublin as the firm aims to support its investment activity in Ireland with boots on the ground.
To finish, we have a healthcare deal, a sector that enjoys a steady stream of activity. Gilde Healthcare has invested in a German manufacturer of surgical instruments .
Let’s start with an exit, involving a business that is very familiar to me, having grown up in Finland. Triton Partners has signed an agreement to sell Fonecta, part of its portfolio company European Directories Group.
Sponsor Capital, along with Fonecta’s management, Elo Mutual Pension Insurance Company and a private equity fund managed by eQ, will acquire the company.
Fonecta is a digital marketing company with offices in Helsinki, Turku, Tampere and Pori in Finland. Its estimated revenue for 2023 is around €70 million, according to a release.
This follows Triton’s previous sales of Suurland, Klantenvertellen and Youvia in the Netherlands and Dogado Group in Germany in March 2023.
Fonecta’s divestment is the fifth and final partial exit of EDSA.
Sponsor Capital will acquire all Fonecta group companies including Fonecta, OIKIO Digital Performance Agency, 020202 Palvelut, 02 Taksi and 020202 Solutions.
“Turning around a legacy directory business such as Fonecta in a market characterised by significant disruption has required noteworthy effort and tenacity,” said Björn Osterloff, board member and Triton representative.
PE firms opening new hubs, such as Brookfield opening an office in Frankfurt earlier this month, is a topic we write about fairly frequently. We have more news of the sort this morning, as Exponent Private Equity has opened a new office in Dublin.
Establishing a Dublin office follows Exponent’s decision to utilise Ireland’s newly revised Investment Limited Partnership structure, following approval from the Central Bank of Ireland for Exponent’s Irish business to operate as an Alternative Investment Fund Manager, according to a release.
The new office, located at 39 Merrion Square, will be led by Jacqueline Flynn, who joins the firm as operations director. Flynn previously worked at BlackRock as chief operating officer for its Irish operations.
The Dublin office will also support the firm’s investment activity in Ireland led by David McGovern, a partner, alongside other senior members of the team.
“Ireland is a compelling environment to invest the resources of our firm and opening an office in Dublin is a natural and exciting step for our business,” said McGovern.
In late spring this year, I spoke with Exponent partners Tim Easingwood and James Gunton about Exponent’s exit from recycling and resource recovery services provider Enva. You can read my story here.
Exponent’s other recent activity includes its divestment of Meadow, a provider of sustainable dairy, confectionery and plant-based ingredients, in August.
Let’s finish with a bit of healthcare. Gilde Healthcare has invested in Koscher & Würtz (K&W), a contract manufacturer of precision surgical instruments based in Germany.
Spaichingen-based K&W’s acquisition follows Gilde Healthcare’s initial investment in Chr Diener, an instrument contract manufacturing company, in July 2022.
K&W will join Chr Diener, together employing about 300 staff members.
“K&W adds an important additional segment in form of disposable instruments to the group,” said Rafael Natanek, general partner at Gilde Healthcare Private Equity. “There is also a great strategic fit between K&W and Chr Diener.”
Gilde Healthcare is a healthcare investor managing over €2.6 billion across its two strategies: venture and growth, and private equity. The private equity fund of Gilde Healthcare invests in lower mid-market healthcare companies based in North-Western Europe.