Litorina builds IT security group

After a year of groundwork the Nordic buyout firm has bought two IT security companies and reformed them into a combined group with a third company. Litorina Kapital has also brought in the two companies’ former chief executive when they were owned by Bewator, Bo Kastensson.

Nordic buyout firm Litorina Kapital has bought three IT security companies and merged them together to form Coromatic creating a combined group with a turnover of greater than Skr550 million ($85.8 million; €58.4 million) and an EBITA of more than Skr55 million, according to Harold Kaiser, Litorina Kapital’s managing partner.

Harold Kaiser:
Building IT

Litorina has been working on the acquisition and merger of parent company Coromatic, Metric Power and Scanpocon for around a year, Kaiser said.

Litorina has brought in former Bewator chief executive Bo Kastensson as chairman of the combined group. Bewator owned Metric Group and Scanpocon during Kastensson’s time as chief executive, when they were part of the Metric Group. This group was later broken up into various separate companies, two of which Litorina has bought and recombined.

The separate bolt-on Coromatic has grown organically 30 percent per annum over the last four years to a turnover of Skr325 million in 2007. Metric Power and Scanpocon have a combined turnover of approximately Skr225 million mainly in the Norwegian and Danish markets.

Kaiser said Litorina planned to grow turnover at the group to more than Skr1 billion over the next few years.

Kaiser said Litorina has also recruited two associates Magnus Hedman and Joseph Ahlberg. Hedman worked for two years in UBS’ investment banking team, while Ahlberg worked for two years at management consultancy Arthur D. Little.

The investment is Litorina’s fourth from its third fund, which it closed in September two times oversubscribed despite losing cornerstone investor Swedbank.