Nordic Capital to buy majority stake in circular IT services firm Foxway
Nordic Capital has inked a deal to acquire a majority stake in Foxway, a European circular IT services provider known for promoting the sustainability of IT devices across the value chain.
The parties have agreed to keep the terms of the transaction undisclosed.
The joint venture with Foxway’s management and existing owners, Norvestor, is intended to bolster the company’s growth, international expansion, and enduring positive impact.
Founded in 2009, Sweden-based Foxway has made significant strides in sustainable IT. With a presence in more than 100 countries, including Europe, Asia, and the US, the company assists customers in embedding sustainability into their operations.
Foxway specializes in recovering and remarketing IT devices and equipping businesses with the infrastructure to guarantee a sustainable life-cycle. Annually, the company sources, finances, and refurbishes over 1.5 million devices, saving approximately 120,948 tons of CO2e in 2022 alone.
The circular IT services provider is ideally poised to capitalize on the growing sustainability demands from customers, digitalization trends, and economies of scale to boost growth and create a lasting positive impact.
The company’s recent customer partnerships and acquisitions in Spain, Sweden, Estonia, Norway, Denmark, Germany, and the UK reinforce Nordic Capital’s confidence in Foxway’s business model and long-term strategy.
It has seen consistent growth in recent years, reporting gross revenue of over SEK 7.6 billion in 2022. The Foxway team, consisting of over 1,000 employees in eight countries, has grown considerably. Nordic Capital and Norvestor, in collaboration with the company’s management, are set to aid Foxway’s continued success.
Joakim Andreasson — Nordic Capital Advisors Managing Director said: “We are impressed with the development of Foxway, becoming a leader in its sector with significant opportunities.
“Nordic Capital has deep experience in the circularity space from similar current investments and will look to leverage its sector knowledge and operational experience to help realise Foxway’s full potential as a truly global circular IT lifecycle management company.
“With a focus on M&A, expansion, and further investments in operational excellence, Foxway will be in a strong position to help accelerate an industry-wide sustainable transformation.”
Nordic Capital, with over 30 years of experience in spurring the growth of innovative international companies, sees the partnership with Foxway as aligning perfectly with its focus on growth companies with circular business models.
Martin Backman — Foxway CEO said: “We’re pleased to have Nordic Capital as a new partner on our journey. We are immensely proud of the team at Foxway and how we have built a European leader in circular IT.
“With new valuable international experience and expertise, I’m confident that this will able us to support more clients on a global scale to incorporate a more sustainable profile in their businesses. With our leading in-house refurbishment centers, Foxway is leading the industry into a more sustainable era and enabling the complete eco-system of circular services.”
The transaction is due for completion in Q3 2023, pending customary closing conditions, including requisite regulatory approvals.