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CapMan invests in leading insurance software provider Profit Software


CapMan Press Release 15 December 2009 8.00 a.m.  

CapMan and Profit Software today announced that the CapMan Technology 2007 fund will invest in Profit Software Oy, the leading supplier of product-based IT software to Northern Europe’s insurance and financial sector. The aim of the investment is to support Profit Software’s expansion into additional European markets.
Profit Software produces and delivers web-based software products that allow insurers to manage all their services, business lines and processes. These ready products, which can be quickly taken into use, have been shown to significantly reduce insurers’ IT costs while allowing them flexibility and speed in adapting their business and introducing new services. Since its foundation in 1992, Profit Software has served more than 40 clients in nine countries. The company had net sales of EUR 10.8 million in 2008, and today has approximately 120 employees in Finland, Estonia and Poland.
“We believe Profit Software has great opportunities to expand its operations in Europe with its excellent product concept,” said CapMan Senior Partner Vesa Walldén. “The company has built up a comprehensive customer base and market position, particularly in Finland and the Baltic states, and with this investment we are looking to repeat that success in other countries of operation.”
“We are very pleased that CapMan has chosen to invest in Profit Software’s international expansion after conducting an extremely thorough analysis of our business, technology and strategy,” said Profit Software co-founder and CEO, Harry Nyroos. “With this investment we will be able to quickly ramp up the resources we need to take our leading product concept to new clients on the international market. This will also benefit our existing customers, many of whom have expressed their support for the financing arrangement and the direction it will allow us to take our development.”
Certain preconditions must be met prior to completion of the investment, which is expected to take place before the end of December 2009. Upon completion, the CapMan Technology 2007 fund will hold approximately 34 percent of Profit Software. The remainder is owned mainly by the company’s management and employees. CapMan Plc is a significant investor in the CapMan Technology Fund.
For further information, please contact:
Vesa Walldén, Senior Partner, CapMan Technology, Tel +358 400 616 997
Harry Nyroos, CEO, Profit Software Ltd, Tel +358 40 503 0812
Andrew Flowers, Vice President, Marketing and Communications, Profit Software Ltd, Tel +358 45 269 4422
CapMan is one of the leading alternative asset managers in the Nordic countries and Russia and manages private equity funds with approximately EUR 3.5 billion in total capital. CapMan has six investment areas (CapMan Buyout, CapMan Technology, CapMan Life Science, CapMan Russia, CapMan Public Market and CapMan Real Estate), and each of them has a dedicated team and funds. Altogether CapMan employs approx. 150 people in Helsinki, Stockholm, Copenhagen, Oslo and Moscow. CapMan was established in 1989 and its B shares are listed on the Helsinki Stock Exchange since 2001.
Profit Software
Profit Software offers a complete suite of ready software products that allow insurers to create and provide life, pension, property and casualty insurance services. Built on a single web-based platform, our products are quick to implement, cost-effective to run, and easier to maintain than traditional solutions. Since the foundation of Profit Software in 1992 we have served more than 40 clients in nine countries. Today, we lead the market for insurance software solutions in Finland and the Baltic States, and have a growing network of customers in Norway, Sweden and Central & Eastern Europe. Our headquarters are in Helsinki, Finland, and we have subsidiaries in Tallinn, Estonia, and Warsaw, Poland.