Netum Group Oyj | Company Announcement | Inside information | 14 July 2023 at 4:00 p.m. EEST 

Inside information: Netum Group Plc accelerates its growth by acquiring the entire share capital of Buutti Oy 

Netum Group Plc and the main shareholders of IT service company Buutti Oy have today 14 July 2023 signed an agreement whereby Netum Group Plc will acquire the entire share capital of Buutti Oy. The closing date under the purchase agreement is 1 September 2023. The acquisition is in line with Netum's strategy and supports the achievement of the company’s medium-term financial targets. 

Buutti Oy's business and financial information

Oulu-based Buutti, founded in 2017, offers IT consulting and software development services in embedded systems, cloud services and web applications. The company employs 110 professionals, and its clientele consists mainly of corporate customers (approximately 80 %) and public sector customers (approximately 20 %). The largest customers are in the fields of telecommunications, healthcare, banking and finance. In addition to Oulu, Buutti has offices in Helsinki and Tampere.

The company's revenue in 2022 was EUR 9.3 million and operating profit was EUR 1.1 million. The balance sheet total was EUR 3.6 million and equity EUR 1.7 million.

Strategic objectives of the acquisition

The acquisition is in line with Netum's strategy and supports the achievement of the company’s medium-term financial targets. Buutti's business will bring further growth, especially from corporate customers, and it will expand Netum's service offering, for example, in the development of embedded systems and training services. In addition, Netum's operations will expand regionally to Oulu as a result of the acquisition.

"For us, the acquisition of Buutti marks the merging of the paths of two companies that have grown strongly and profitably, and it is a big step for us at Netum in achieving our growth targets. The acquisition strengthens our position in the corporate customer segment, almost doubles our digital services development capacity and brings us strong new expertise, for example, in embedded systems development. Buutti and Netum share similar values and a corporate culture, which focuses on creating added value for customers. It is also important for us that our operations expand to the Oulu region," says Matti Mujunen, CEO of Netum Group Plc.

"Buutti has grown strongly and profitably in recent years thanks to our strong expertise, successful new customer acquisition and efficient recruitment process. Netum Group was a very natural choice to support Buutti's next growth steps, and with a broader service portfolio, among other things, the arrangement brings a very positive vibe to our future growth plans. Together with Netum, we are a much stronger player in both the private and public software development sectors," says Mikko Koistinen, CEO of Buutti Oy.

Key terms of the acquisition

In the acquisition, Buutti Oy's enterprise value (EV) is EUR 10.0 million. Of this, 70% will be paid in cash and 30% in new shares in Netum. In a directed share issue to the sellers, 865,851 shares in Netum will be transferred to the shareholders of Buutti Oy. The volume-weighted average price in the transaction is EUR 3.4648 for the period 31.5.–12.7.2023. The purchase price also includes compensation for net cash and working capital adjustment at the time of closing. The final purchase price will be announced after the closing. In addition, sellers have the possibility of additional earn-out purchase price depending on the achievement of revenue and operating profit targets for the 2024 financial year. 

Netum will finance the acquisition with a bank loan, a directed share issue to the sellers and cash reserves.

Netum’s guidance for 2023 

Netum’s guidance for 2023 will change because of the acquisition. An updated guidance will be provided as soon as possible after the closing of the transaction. 

Buutti Oy key figures, audited

For additional information, please contact:

Netum Group Plc
Matti Mujunen, CEO
+358 40 047 6401
matti.mujunen@netum.fi

Certified advisor:

Evli Plc
+358 40 579 6210

Netum Group in brief

Netum Group Plc is a profitably growing IT services company with over 20 years of experience of demanding IT projects. The company offers its public administration and corporate customers its “Legacy to Digi®” concept. This concept enables combining traditional IT solutions with the latest digital applications safely and in a responsible way. Netum's goal is to be the most trusted partner and the preferred employer in the industry. In 2022, Netum Group's revenue was EUR 29.1 million, and the company currently has approximately 300 employees in Finland. www.netum.fi/

Buutti in brief

Founded in 2017, Buutti Oy is an IT consultancy and software development house that has grown into a team of over 100 software developers, trainers and other ICT professionals. Buutti provides business-critical software development services to its client base, which mainly consists of companies in the telecom, healthcare, banking and finance sectors. Buutti’s strongest competencies are web development, embedded systems and mathematically challenging projects. Training people in ICT is also at the core of its activities. Buutti Education's workforce training courses prepare adults to become software developers all over Finland. https://buutticonsulting.com/