Telecare Service merges with Deltaservice from Norway and Optima from Finland, and hereby establishes the largest mobile phone and tablet repair services provider in the Nordics in a deal funded by CataCap

Telecare Service, a Copnhagen, Denmark-based company providing repairments for the telecom industry, announced its intentions to merge with the two largest competitors in Norway and Finland, and hereby establishe the largest mobile phone and tablet repair services provider in the Nordics.

The merger more than triples Telecare’s revenue which is expected to amount to approximately DKK 675m in 2014.

Telecare’s majority shareholder, the private equity fund CataCap, is behind the consolidation, which is financed through the issue of SEK 350m in corporate bonds, along with capital from existing owners. In addition, the global investor Adveq, headquartered in Zurich, will become a co-owner.

Telecare Service has, since 2010, built a leading position in the Danish market for repair and service of mobile phones. In 2012 the company successfully entered the Swedish market in which it has achieved a leading position today. In June 2013 the private equity fund CataCap became majority owner of the company with the ambition to catalyse additional growth in Sweden and the remaining Nordics.

Parallel to strong organic growth in 2013, which has continued in the current year, a dialogue was initiated with Deltaservice in Norway and Optima in Finland, regarding the opportunity to combine the three companies with the aim of servicing international customers, such as Samsung, Apple, Telia, “3”, TDC and Elgiganten across the Nordic countries. During the past week, these efforts led to the signing of a share and purchase agreement of both Deltaservice and Optima. Both deals are expected to be finalized by end May 2014.

Deltaservice is the largest Nordic provider of mobile phone repairs and is the market leader in both Norway, and Sweden, with service centres located in Kongsberg (NO), Drammen (NO), Malmø (SE), and Kalmar (SE). Optima is the market leader in Finland, with a centralized service centre in Helsinki (FI).

Combined with Telecare’s service centres in Esbjerg (DK), and Ljungby (SE) the collective group will cover the entire Nordic Region, with approximately 450 employees and expected revenues in 2014 of DKK 675m. CataCap will remain the majority shareholder, with an ownership stake of plus 70%.

The merger of the three companies is expected to generate substantial synergies that will improve the group’s future competitive position within, for instance productivity, mobile device management and IT support of logistics and end consumer communications.

Besides a capital injection from existing shareholders, the global private equity investor Adveq, headquartered in Zurich, co-invests in Telecare and becomes a minority shareholder.

The merger is financed through the issue of SEK 350m in corporate bonds, which are to be listed on the Nasdaq OMX exchange in Stockholm within the next twelve months. The bond issue is ground breaking in Denmark as a means of financing M&A transactions within the SME segment.