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Verdane picks up portfolio of Swedish internet companies

25 Apr 2014

Nordic secondary direct investor Verdane Capital has acquired a portfolio of ten Swedish internet companies from Aggregate Media.

This is Verdane’s fourth acquisition from Aggregate Media since 2006 and the 22nd portfolio acquisition in total.

Verdane said it would look to use of knowledge of e-commerce to develop the ten new companies by expanding geographically, streamlining logistics, improving user interfaces and enhancing pricing and product line strategies. Verdane has been investing in e-commerce since the mid 2000s and have seen success in recently realised companies such as LensOn and Compricer.

“Geographic expansion is often a natural evolution for e-commerce companies that Verdane funds acquire. In many companies it is, however, just as important to focus on core products and not fall for the temptation of broadening the offering too much” says Staffan Mörndal, partner at Verdane Capital. ”Because Verdane funds have invested in over 25 e-commerce companies we can go in on day one with lists of over 100 points to help the companies find the right expansion strategy.”

The transaction with Aggregate Media is a good example of how Verdane can unlock value by providing sector expertise and capital to a number of assets at once. Aggregate Media gives companies media space in exchange for company ownership, but does not have the scope to make follow-on capital investments. Verdane can provide liquidity for several assets at once and is hence an attractive buyer. In turn, Verdane can cherry pick assets from a broad portfolio and select companies in which it can make the most significant impact.

Verdane has more than SEK5bn in committed capital and focuses on buying Nordic portfolios of direct investments in sectors such as energy, ICT and general industries. It also considers investments directly in selected growth-stage companies.

Since 2003, Verdane hasacquired 21 portfolios with stakes in over 250 companies. It has invested in companies such as Mathem, BytHjul, Resman and Wireless Maingate. Former holdings include Coding Technologies, Chipcon, DIBS, Nacre, Reslink, Reslab and Tradedoubler.

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