Blancco to operate as an independent subsidiary and remain headquartered in Finland.
Blancco Oy Ltd., a global leader in data erasure, has announced its purchase by U.K.-based Regenersis Plc, a strategic outsourcing partner to many of the world’s leading consumer technology companies. Regenersis purchased the data erasure software specialist’s entire share capital for the purchase price of approximately 60 million euro, Blancco reports.
Blancco, which will remain headquartered in Finland, will operate as an independent subsidiary of Regenersis. The Blancco name, brand and organization will remain the same, and the company’s acquisition will have no impact on Blancco’s existing customer relationships, according to the company.
Regenersis’ portfolio includes products that will be integrated into Blancco’s portfolio.
“This transaction should have no effect on Blancco’s growth, which should continue at its current impressive rate,” Kim Väisänen, managing director of Blancco says.
Regenersis’ strategy is to grow Blancco operations organically and through other mergers and acquisitions.
Väisänen will continue as managing director of Blancco. In addition, he also will be the head of software services for Regenersis.
According to the Regenersis board of directors, Regenersis will be able to build on existing customer relationships with Blancco’s data erasure products.
Regenersis says it believes erasure demand will continue to grow based on the upcoming EU tightening of data protection legislation, among other things. Blancco estimates that in the EU, less than 10 percent of companies use a proper data destruction service provider.
Blancco Group’s total sales in 2013 was 15 million euros, with sales outside Finland accounting for 97.6 per cent of the total. Operating profit was approximately 5.3 million euro. Until the acquisition, Blancco's primary owners were Kim Väisänen (43 percent share), Michael Röchner (34 percent) and Ari Hakkarainen (12 percent). Väisänen will invest a portion of the sale price by purchasing back a portion of shares of Regenersis.
Regenersis is listed on the London Stock Exchange as a British global outsourcing services provider with operations in 25 locations in 13 different countries. Regenersis specializes in mobile phones and other consumer electronics service and repair activities. The company's customers include Nokia, Samsung and HTC. Regenersis’ sales totaled 220 million euro in fiscal year 2013.
Mathew Peacock, executive chairman of Regenersis, says, “I am delighted with this acquisition. Blancco is a great business with an excellent fit, and at a price that works for our shareholders. Most importantly it moves the center of gravity of the group clearly into advanced solutions, with a majority of our profits in this segment, and opens up a variety of possibilities for future development.”