Bahrain’s Investcorp to invest in Finland’s Eficode and become majority shareholder

Investcorp, an alternative asset manager with Mubadala Investment Company as its biggest shareholder, has agreed to make a “significant” investment in Finland-based technology company Eficode to become its majority shareholder.

As part of the deal, Investcorp will team up with Eficode’s founder Risto Virkkala and its chief executive Ilari Nurmi to support the company’s next phase of growth and international expansion, Investcorp said in a statement on Monday. It did not disclose the total value of the transaction.

Founded in 2005 in Helsinki, Eficode is a pioneer of DevOps and currently serves 1,400 customers with a presence in 10 countries including Finland, Sweden, Denmark, Germany, Switzerland, the UK and the US.

Eficode grew its revenue from €22 million ($24 million) to more than €150 million in the past four years.

“We are excited to partner with Eficode in a sector that holds such huge potential,” said Tarek AlMahjoub, head of UAE and Oman for Investcorp’s private wealth.

“Eficode’s organic growth to date has been extraordinary and their expertise is increasingly valued by the world’s leading multinational corporations.”

DevOps is the process of developing software at high speed. It helps companies to become competitive in the market and serve customers in a better way.

The global DevOps market size was valued at $6.78 billion in 2020 and is projected to reach $57.90 billion by 2030, according to Allied Market Research.

The latest deal comes as Investcorp continues to expand its portfolio in the technology sector. Its notable investments include Swedish-based electronic health record software and services provider Cambio and Vivaticket, a global provider of ticketing software solutions.

It has also invested in tech-enabled digital sales and marketing solutions platform CloudCare as well as Resultant, a modern data, technology and digital transformation consulting firm.

Investcorp's current investments in Nordic countries in addition to Cambio include telematics solutions provider Abax, POC, a manufacturer of premium skiing and cycling apparel and equipment and Sanos, which is specialised in providing clinical trial services.

"We see a great opportunity to leverage our extensive track record of supporting the growth of professional services firms to Eficode’s advantage — the sector has enormous scope for growth and Eficode has the fundamentals and market position to scale and expand rapidly," said Yusef Al Yusef, head of Investcorp’s private wealth.

Investcorp, with $42.7 billion in total assets under management as of June 30 last year, including those run by third-party managers, is an active investor in mid-market companies across consumption-linked sectors and in the proper business.

It has 13 offices in the US, Europe, GCC and Asia, including India, China and Singapore.

The latest transaction is expected to close in the first quarter of next year and is subject to customary closing conditions and regulatory approvals, Investcorp says.