Nordic Capital has signed an agreement to acquire a majority share in Foxway, a leading European provider of circular IT services. The Company has since it was founded in 2009, focused on improving sustainability of IT devices by increasing circularity across the value chain, and is well positioned to benefit from secular tailwinds. Nordic Capital will in joint partnership with Foxway’s management and alongside its current owners Norvestor, support continued growth, international expansion, and the Company’s focus on making lasting positive impacts.
Foxway is a fast-growing European company, based in Sweden, with offices in Europe, and presence in Asia, and the US. By providing circular IT services in more than 100 countries, Foxway has supported its customers to make sustainability an integral part of their businesses. Foxway helps its customers increase efficiency, business success, and reduce their tech footprint by recovering and remarketing IT devices and providing the infrastructure necessary to ensure a sustainable life-cycle. With circularity inherent to the business model, Foxway sources, finances, and refurbishes >1.5 million devices annually in the circular flow, avoiding 120 948 tons CO2e in 2022.
Foxway is uniquely positioned to benefit from secular tailwinds of increasing sustainability demands from customers, digitalisation trends, and the increasing economies of scale to drive growth and make a lasting positive impact. Several recent high-profile customer partnerships, together with acquisitions completed in Spain, Sweden, Estonia, Norway, Denmark, Germany and the UK, reinforce Nordic Capital’s belief in Foxway’s business model and long-term strategy.
Foxway leverages the rising demand from companies and organisations seeking circularity in their IT portfolios to reduce their climate footprint and Scope-3 emissions, which is reflected in recent growth. The previous years have seen steady growth, with the Company reporting over SEK 7.6 bn in gross revenue in 2022 and the Foxway team has grown impressively and comprises over 1,000 dedicated employees located in eight countries.
Nordic Capital and Norvestor will, in partnership with the Company’s management, support Foxway’s continued successful trajectory. Nordic Capital has more than 30 years’ experience of accelerating growth of innovative international companies and the partnership with Foxway fits well with its focus of backing growth companies with circular business models.
Martin Backman, CEO of Foxway, said: “We’re pleased to have Nordic Capital as a new partner on our journey. We are immensely proud of the team at Foxway and how we have built a European leader in circular IT. With new valuable international experience and expertise, I’m confident that this will able us to support more clients on a global scale to incorporate a more sustainable profile in their businesses. With our leading in-house refurbishment centers, Foxway is leading the industry into a more sustainable era and enabling the complete eco-system of circular services.”
Joakim Andreasson, Managing Director, Nordic Capital Advisors, said: “We are impressed with the development of Foxway, becoming a leader in its sector with significant opportunities. Nordic Capital has deep experience in the circularity space from similar current investments and will look to leverage its sector knowledge and operational experience to help realise Foxway’s full potential as a truly global circular IT lifecycle management company. With a focus on M&A, expansion, and further investments in operational excellence, Foxway will be in a strong position to help accelerate an industry-wide sustainable transformation.”
Henning Vold, Partner Norvestor commented: “It has been a pleasure working with Martin and team since 2019, driving the shift towards circular and sustainable business models in the IT services space. We welcome Nordic Capital as new majority owner and partner, and believe their strong track-record of partnerships with companies focusing on sustainable growth and international expansion is an optimal fit for the Company. We look forward to continue supporting Foxway in its next growth phase.”
It has been agreed that the terms of the transaction shall not be disclosed. Completion of the transaction is expected in Q3 2023 and is subject to customary closing conditions, including relevant regulatory approvals.
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About Nordic Capital
Nordic Capital is a leading private equity investor with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a long history. Focus sectors are Healthcare, Technology & Payments, Financial Services, and selectively, Industrial & Business Services. Key regions are Europe and globally for Healthcare and Technology & Payments investments. Since inception in 1989, Nordic Capital has invested EUR 22 billion in over 130 investments. The most recent fund is Nordic Capital Fund XI with EUR 9 billion in committed capital, principally provided by international institutional investors such as pension funds. Nordic Capital Advisors have local offices in Sweden, the UK, the US, Germany, Denmark, Finland and Norway. For further information about Nordic Capital, please visit www.nordiccapital.com
“Nordic Capital” refers to, depending on the context, any, or all, Nordic Capital branded entities, vehicles, structures and associated entities. The general partners and/or delegated portfolio managers of Nordic Capital’s entities and vehicles are advised by several non-discretionary sub-advisory entities, any or all of which are referred to as “Nordic Capital Advisors”.
Norvestor is a leading private equity company focusing on mid-market buyouts in the Nordic region. The team has worked together since 1991, making it one of the most experienced private equity teams in the Nordics, having executed 84 investments with >400 add-on acquisitions, in addition to executing 59 exits, including 16 IPOs. The Fund seeks to invest in growth companies in the Nordic mid-market that have the potential to achieve a leading Nordic or international position, typically through organic growth, acquisitions across fragmented industries or by geographic expansion. Read more at www.norvestor.com