LeadDesk Plc, Press Release, 19.12.2024 at 14.45 EET.

LeadDesk acquires Zisson to solidify its position as a top provider of contact center solutions in Europe

Insider information until 19 December 2024 at 14.40 EET.

Unofficial translation of company release. In case the document differs from the original, the Finnish version prevails.

LeadDesk has taken a significant step towards Nordic market leadership by acquiring Zisson, a Norwegian provider of cloud-based contact center software. The acquisition is part of LeadDesk’s strategy to consolidate the fragmented European CcaaS (Contact Center as a Service) market. After the acquisition, Norway will be LeadDesk's largest market, surpassing Finland.

LeadDesk is a leading AI-enabled sales and customer service software, with customers in 34 countries and a diverse customer base in finance, telecom, healthcare, energy, and public sectors. In addition to a strong Nordic home market, LeadDesk has achieved significant growth in Continental Europe.

LeadDesk’s strategy is to replicate the Nordic home market success in Continental Europe. A strong, profitable, and growing home market drives innovation and supports this expansion. By joining forces with Zisson, LeadDesk reinforces its team, enhances technical expertise, and expands its customer base in the Nordic home market, especially within healthcare and public sector verticals. Leveraging increased scale and cost synergies, LeadDesk is well-positioned to accelerate its growth investments and pursue additional M&A opportunities.

Zisson is a SaaS software company specializing in customer service and contact center solutions. In 2023, Zisson’s net sales amounted to EUR 9.0 million and EBITDA EUR 0.6 million. Zisson employs approximately 33 people in Oslo, Norway, and Stockholm, Sweden. With over 15 years of experience in delivering business-critical software solutions, Zisson has established itself as a reliable solution provider in the industry. The Zisson Group consists of the Norwegian company Zisson AS and its wholly owned Swedish subsidiary, Zisson AB. The Zisson Group’s ownership structure includes private equity firm Verdane, Krogsrud Invest, and current and former employees of the company.

LeadDesk’s management anticipates positive synergies and growth opportunities from integrating teams and offices in Oslo and Stockholm with LeadDesk’s existing organization. Integration is expected to drive operational improvements, enhance cost efficiency, and deliver direct value to shareholders. Zisson’s brand and software will continue to be developed and served to clients across the Nordics. Additionally, Zisson’s current CEO, Michael Ramm Østgaard, will continue as the head of a new business unit. As part of the deal, Verdane will become a minority shareholder in LeadDesk, further strengthening and diversifying the company’s ownership base.

The debt-free purchase price is 10.0 million euros. The adjusted purchase price, considering net debt and net working capital, is 3.3 million euros. Of this, 1.1 million euros will be paid in cash considerations, and 2.2 million euros will be settled through a directed share issue of 336,718 shares to the sellers. The subscription price of the shares corresponds to the volume-weighted average price of 6,43 euros during the trading period from November 6 to December 18, 2024. The newly issued shares represent approximately 6.1% of LeadDesk Oyj’s outstanding shares. The cash considerations of the transaction will be financed with a loan. Additionally, the company has agreed on a refinancing arrangement with Nordea, which also covers the debts of the acquired company.

LeadDesk CEO, Olli Nokso-Koivisto:

“We are thrilled to welcome Zisson to the LeadDesk family, marking an important milestone in strengthening our market position and profitability in the Nordic home market. This acquisition not only reinforces our position as one of the leading CCaaS providers in the Nordic market but also elevates Norway to become our largest market, surpassing Finland. With Zisson on board, we have a solid foundation in the Nordics. This will enable us to pursue further expansion and investment opportunities across Continental Europe, where generative AI is expected to accelerate market consolidation further. Furthermore, I’m excited to welcome Verdane as a new minority owner,"

Verdane Investment Director, Erling Amble:

"We are proud to have partnered with Zisson since 2018 and worked closely with the company to continue its expansion. We would like to thank Michael for his efforts as CEO the last 18 months and the rest of the Zisson team for all their efforts throughout the years of our partnership. We have been following LeadDesk for many years and believe that they are the right strategic partner to take Zisson forward, further consolidate the fragmented market and become the leading CCaaS provider In Europe. We look forward to seeing these two companies come together and combining their strengths to unlock new opportunities for growth.”

Zisson CEO, Michael Ramm Østgaard:

"We are pleased to join forces with LeadDesk, making us together one of the largest CCaaS provider in Norway. This partnership enhances our ability to deliver even more comprehensive solutions and support to our clients. The alignment in our values and shared vision for the future growth marks an exciting new chapter for Zisson, its customers and partners, as well as all its employees,"

Due to the mission critical nature of contact center software to critical services, the transaction is subject to approval from the Swedish Inspectorate of Strategic Products under the Swedish Foreign Direct Investment (FDI) regime and is anticipated to close by the end of January 2025. There are no other extraordinary terms for closing and Zisson is expected to be reported as part of the LeadDesk Group by the first of February 2025.

Key figures for Zisson group¹

¹The group’s' financial reports have been adjusted to the average exchange rate of the Finnish currency during the reporting period, and the balance sheet totals to the exchange rate on the closing date.

Additional information

Olli Nokso-Koivisto, CEO, LeadDesk Plc
+358 44 066 5765
olli.nokso-koivisto@leaddesk.com

Certified Adviser:
Oaklins Finland Oy, +358 9 6129 670

Distribution:
Nasdaq Helsinki
Main media
www.leaddesk.com

LeadDesk in brief

LeadDesk is a leading European provider of cloud-based contact centre software. The LeadDesk cloud  service, powered by artificial intelligence, improves customer experience and sales productivity. Over 20,000 customer service and sales professionals work more efficiently with LeadDesk weekly. In 2023, the Group's revenue was EUR 29.4 million, most of which came from outside Finland. The Group has offices in eight European countries. LeadDesk Plc's shares are traded on the Nasdaq First North Finland marketplace under the ticker LEADD. www.leaddesk.com

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