Netcompany acquired a 20% stake in the Danish based Festina Finance – a provider of software for the Life and Pension industry with a customer base in Denmark and the Netherlands.
The investment will accelerate the entry “into new markets for Festina Finance and enhance Netcompany´s offering into the Financial Services Industry significantly.”
Customers include large life pension companies “like Pension Denmark and AP pension in Denmark and APG and AZL in the Netherlands.”
In addition, Festina Finance offers a software solution used “for the advisory role in banks. Customers on that platform include SDC and more than 20 member banks in Denmark, as well as a few building societies in the UK.”
The investment in Festina Finance will “broaden Netcompany´s offering and competences within the Financial Services Industry to cover both insurance, life pension and banking in line with the strategy and ambition to increase presence in that sector further.”
The two solutions from Festina Finance can “be enhanced with current Netcompany platform solutions such as Pulse, Amplio, Ami and DX4B, and thereby increase customer value substantially.”
The partnership will aim to “add further security to customers of large-scale IT projects by utilising Netcompany´s capabilities and track record in managing and implementing large and complex IT solutions in time and at budget.”
André Rogaczewski, CEO and Co-founder of Netcompany, says:
“I am excited that Festina Finance joins forces with the Netcompany Group. Festina Finance has proven to be able to develop scalable software solutions that can be implemented in multiple countries. The large-scale implementation projects that these solutions often require are a perfect match for Netcompany´s implementation capabilities, and we are certain that this investment will accelerate our growth in the Financial Services Industry throughout Europe significantly.”
Morten Schantz, Founder of Festina Finance, says:
“With the partnership that we are entering into with Netcompany we get to focus on what we do best – develop software solutions, while Netcompany gets to do what they do best – implement complex and mission critical IT solutions. To me that is a true “win-win” that will enable Festina Finance to accelerate its growth and together with Netcompany enter new markets.”
The investment of DKK 107m – all paid in cash – will not impact Netcompany´s financial guidance for 2023. Leverage will be increased “by around 0.1-0.2x from the investment. Morten Schantz and the current executive management team will continue their roles in Festina Finance.”