The company grew by taking market shares in Sweden and Finland as well as establishing presence in Poland, Germany, Switzerland and Denmark. The German expansion was implemented through an acquisition. eGain has performed energy optimization in more than 250,000 apartments in 11 countries all around Europe, which has contributed to a significant decrease in CO2 emissions.
The software company from Kungsbacka which transformed into a European service provider
In 2014, Ceder Capital invested in eGain Group AB (”eGain”) which at the time had a turnover of SEK 40 million with an EBITDA of SEK 10 million. During Ceder Capital’s partnership both the turnover and earnings were doubled.
Implemented initiatives and changes
- Full focus to create recurring income. According to our experience, this business model and philosophy always drives shareholder value and is a keystone in Ceder Capital’s increase in value
- Product development. New products within measuring of temperature and humidity in order to improve our offer to the property owner
- Focusing the sale work to customer value as well as increased efficiency in the work of the sellers
- Internationally eGain expanded in Switzerland, Austria, Denmark, Germany and Poland. In Germany, the business was started by acquisition while in the other countries the expansion was made through recruitment of the right co-workers
- During our holding period it was agreed that Thorbjörn should retire from the operational responsibilities and after about two years we mutually appointed a new CEO. A successfully disengaging of the original entrepreneur’s operational function may be difficult to realize but it creates an increase of company value and Ceder Capital assist to this process
In 2016 PwC Corporate Finance was engaged to perform a sale process. The interest was high considering eGain’s large growth and recurring revenue, but we chose to sell the majority to Summa Equity as their ESG profile was the right owner to continue the growth of eGain. Ceder Capital and the management chose to remain as minority investors in eGain.