HELSINKI, FINLAND: Gofore Plc has acquired the entire share capital of Devecto Oy, a company specialised in software development and testing of smart devices and machinery, and related testing systems.

The purchase price amounts to EUR 21.0 million, consisting of the debt-free price of the business operations of EUR 20.0 million, and of compensation payable for the net cash and working capital adjustment, estimated to amount to approximately EUR 1.0 million.

Gofore Plc will be paying 70% of the purchase price in cash and 30% in the form of share consideration. Also, an earnout has been agreed upon, based on Devecto’s profit for the year 2022. The maximum earnout shall amount to EUR 5 million and, in case it materializes, will be payable in the form of cash consideration during the first half of 2023.

One of the two founders of Devecto Oy, Harri Laukkanen, will assume the role of the Managing Director of Devecto as of 3 January 2022. The former Managing Director and the other founder Pasi Salonen will continue in the company to support the integration.

With the acquisition, Gofore strengthens both its position in the private sector and its services within industrial digital transformation. Gofore and the owners of Devecto Oy have signed the agreement today 3 January 2022 and the transaction has been executed immediately.

Devecto employs 130 professionals in Jyväskylä, Espoo, Tampere, Oulu and Kajaani. For the financial year of 2021, the company’s net sales are estimated to reach approximately EUR 10.7 million and EBITDA approximately EUR 2.0 million. In 2020, the company’s net sales amounted to EUR 7.8 million and EBITDA to EUR 1.5 million.

Devecto will continue to operate as an independent company and will be reported as part of the Gofore Group as of 3 January 2022. Gofore estimates a positive growth in Devecto’s net sales to continue in 2022.

Devecto provides demanding software design for smart devices and machinery, along with related services and tools. Industrial digitalisation solutions, software development for mobile machinery and embedded devices form the core competence of the company.

Devecto serves customers from requirements determination and service design to the development and quality assurance of entire systems and digital services. Devecto’s customer base includes companies such as Ponsse, Valtra, and ABB.

Gofore expects to generate synergy benefits specifically from the cross-selling of services. Devecto will also be availing itself of the shared services of the Gofore Group to support its growth.

Mikael Nylund, CEO of Gofore, comments: “Based on our strategy, we have been actively developing our private sector customer base and focused particularly on building an offering catering to the digitalisation of smart industry.

For these purposes, Devecto’s expertise is an excellent addition to Gofore’s service portfolio, and the resulting entity, Intelligent Industry, will comprise our smart industry service offering.

Digital solutions and software are becoming increasingly important as digitalisation steers our customers’ product development, IT and business development together.

We want to act as part of this transformation as a digitalisation partner for our customers. That is why Devecto’s expertise rooted in smart devices and telecommunications, as well as its customer relationships are especially valuable to us”.

Harri Laukkanen, Managing Director of Devecto as of 3 January 2022, comments: “Devecto has grown rapidly, and we have recognized in our strategy that our growth requires both internationalisation and non-organic growth.

Together with Gofore, we will assist industrial customers to be even more successful in comprehensive digital transformation.

Professionally, the new family offers our experts new growth, novel development opportunities and career paths. What unites us is a human-driven way of thinking and working, and we share similar values. Gofore’s recognizability and strong employer reputation also support the recruitment of new talent”.

The entire share capital of Devecto Oy was transferred to Gofore on 3 January 2022, and all of Devecto’s shareholders have through the transaction become owners of Gofore.

Gofore Plc is a digital transformation consultancy with over 900 impact-driven employees across Finland, Germany, Spain, and Estonia. www.gofore.com

Devecto Oy is a rapidly growing software development company. The company’s clientele rangers from leading international companies to start-ups. Devecto was established in 2014 and it has headquarters in Jyväskylä. www.devecto.com/en