Lemonsoft

Lemonsoft

LEMONSOFT – A highly profitable and rapidly growing Finnish software company

Rite became a shareholder in 2016 by acquiring a minority stake from the founder and key employees. By that time, the company had a turnover of 5.3 MEUR. During the investment period, we consequently increased our ownership to over 60%.

Lemonsoft develops and sells ERP software solutions to streamline its customers’ processes across different business lines and administration functions. The company’s customer base consists of over 7,600 customers, primarily within industrial manufacturing, wholesale and retail, professional services automation, construction and accounting.

We were impressed by the founder and entrepreneur Kari Joki-Hollanti, who has an extensive background within the Finnish ERP and software market and his ambitions with the company. The core DNA of Lemonsoft lies within product development and to always strive to be a technological frontrunner.  

During Rites investment period, several strategic initiatives has been followed through and Lemonsoft has developed into the markets most comprehensive and versatile ERP solution with all central functions in one package, providing Lemonsoft with a strong competitive edge.

In addition, Lemonsoft has completed eight bolt-on acquisitions that further strengthens the company’s strong market position and offering to its customer in selected customer verticals and customer size (20-250 employees).

In November 2021, Lemonsoft was listed on First North at Nasdaq OMX Helsinki. By the time of the IPO, Lemonsoft had increased its profits with above 25% per annum (CAGR 4 yrs.) reaching 17.2 MEUR in net sales with an adjusted EBIT of 5.4 MEUR (31.4%).

Skincity

SKINCITY – A profitable online growth star dedicated to customer experience

Rite invested in Skincity in 2014 when the company was in its early growth stage and had a turnover of 34 MSEK and were profitable.

At Rite, we were impressed by the founders, Annica Forsgren and Mikael Kjellman, the high level of customer satisfaction as well as the positioning Skincity had in the professional skincare market niche. The entrepreneurs wanted a partner that could support them in taking the company to the next level.

After investing, Rite worked closely with the entrepreneurs to create the right internal structure to build the company´s strong position, brand value, and high level of customer satisfaction. Value creating initiatives have involved short- and long-term strategy, reporting, internal processes, and building of a management team.

At the end of 2017, the Swedish family owned business conglomerate Axel Johnson acquired 70% of the shares in Skincity. Rite remained as minority owner and continued to have an active role in the Board and a close cooperation with management until 2020.

By the time Skincity had developed into an online skincare clinic with a leading position in the professional skincare market, while maintaining high levels of customer satisfaction and loyalty. Skincity had expanded into Norway and Finland and to UK through the acquisition of Effortless Skin. In 2019 Skincity had a turnover of MSEK 419.

Nebula

NEBULA – From early venture 2007 to trade sale exit in 2017

Rite invested in Nebula in year 2007 when the company was in its early growth stage and had a turnover of 6 MEUR. At that time, web and server hosting was still considered an unattractive market due to low barriers to entry and price pressure.

At Rite, we were impressed by Nebula’s high degree of operational excellence, the level of automation in all parts of the business, the scalability of the recurring-revenue business model, and the growth potential of the underlying market. The entrepreneurs had built a small but well-run business. They wanted a partner that could support them in taking the company to the next level. They also wanted to free up some liquidity by selling some of their shares.

To continue growing the company, Rite worked closely with the entrepreneurs and management to support and provide both strategic and operational advice. In 2010, when two of the three founders felt it was time to move forward in their careers, Rite bought their shares and increased its ownership to 80% of the company. In 2013, the Swedish, stock exchange listed investment firm, Ratos, acquired the majority of Nebula while Rite remained as an active minority owner and continued to support the company, implementing a number of value-generating strategic initiatives.

In 2017, the Swedish, stock exchange listed telephone company and mobile network operator, Telia Company, acquired all the shares in Nebula for MEUR 165 (enterprise value). Nebula had developed to a leading ICT service company in Finland with more than MEUR 35 in turnover with very good profitability and was still growing fast at a CAGR of over 20%. The company had made 18 smaller acquisitions, however the majority of the growth from 2007 had been organic.