HELSINKI: Karnov Group AB has signed the agreement to acquire 100% of the shares in the market leading Norwegian knowledge workflow solutions supplier DIBkunnskap AS (DIB), a news release said.

The transaction will be mainly funded via cash consideration and a minor directed share issue to the shareholders of DIB and is within the existing net/debt ratio target.

The transaction further strengthens Karnov Group’s position as a leading supplier of legal knowledge management solutions in Scandinavia. Consummation of the transaction is conditional upon certain conditions, including the company’s performance until closing, and the transaction is expected to close on the 5th of January 2021.

“We are carrying out a strategic acquisition of a market leading provider of knowledge and workflow solutions. The acquisition fits perfectly in our Group, with DIB being a SaaS company with close to 100% recurring revenue. The acquisition allows Karnov Group to both continue our growth in a new vertical in Norway, while also allowing for expansion into Sweden and strengthening our existing product vertical in Denmark. DIBs approach to building knowledge and workflow solutions is an excellent complement to the current Karnov Group portfolio. Further, we expect new product launches within the acquired entity which will further drive growth going forward”, said Flemming Breinholt, CEO and President, Karnov Group.

“I am very excited for DIB to become part of Karnov Group, as their strong brand and expertise in digital knowledge solutions to advisors, enterprises and the public sector, will significantly benefit the DIB growth strategy. We also strongly feel the cultural match between the companies and are confident that we jointly will be able to realise our growth ambitions. Especially within our internationalisation strategy, there are several benefits stemming from Karnov Group, and a match in market strategy,” said Karina Larsen, CEO, DIBkunnskap AS.

DIB is a market leader amongst accounting- and auditing firms as well as large enterprises and provides knowledge and workflow solutions on the Norwegian market, with a strong focus on creating efficiencies in the workflows of professionals. DIB has a strong position with identified opportunities to further grow this market, as well as a clear international growth strategy.

Thereby, Karnov is strengthening its position in Norway and gaining market leadership in an adjacent product vertical. The transaction strengthens the Group’s workflow capabilities, allowing for future market synergies on the existing market. DIB will leverage on existing Karnov distribution channels and capacity to drive market expansion, with a natural product market fit.

The existing management team of DIB will remain, ensuring stability and execution of the defined growth strategy, including an ambition to expand internationally.

Karnov Group is a leading provider of mission critical information in the areas of legal, tax and accounting, and environmental, health and safety in Denmark and Sweden. With brands such as Karnov, Norstedts Juridik, Notisum, Legal Cross Border, Forlaget Andersen and LEXNordics, Karnov Group delivers knowledge and insights, enabling more than 60.000 users to make better decisions, faster – every day.

With offices in Copenhagen, Stockholm, and Malmö, Karnov Group employs around 240 people. Net sales in 2019 amounted to SEK 757 M. The Karnov share is listed on Nasdaq Stockholm, Mid Cap segment under the ticker “KAR”. www.karnovgroup.com