AU-System in VC investment alliance

The Swedish IT consultancy and venture capitalists IT-Provider, web-angel plc and McKenna Venture Accelerator have set aside SEK 300m (E32.3m) to finance new companies.

Swedish IT consultancy AU-System has joined forces with venture capital companies IT-Provider, web-angel Plc and McKenna Venture Accelerator (MVA), to finance new companies.

The four partners will contribute up to SEK 300m (E32.3m) to finance new product companies over a period of three years. Marie-Louise Gefwert, managing director for the jointly owned company, said: “We expect to have established the first of these new companies some time after the summer. We have several good ideas to consider. Together with our partners, we now have a solid foundation for successful creation of new innovative companies.” Under the agreement, the three venture capital companies will contribute with financing and strategic advice for AU-System´s mobile internet product development operations.

“We´ve had many prospective partners knocking on our door. The three companies we have chosen fulfil our requirements both on the Swedish market and in the global arena,” added Tomas Franzén, resident and CEO at AU-System.

AU-System has a 49 per cent shareholding in the partnership but will own less than 20 per cent of the product companies.

AU-System was founded in 1974 and is Sweden's largest IT consulting company specialising in fixed and mobile telecommunications for both voice and data. It has more than 1000 employees in offices in Sweden, the U.K., Italy, the U.S.A., Thailand, and Singapore.