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Business Technology company Sofigate’s rapid growth continues: revenue doubled

Sofigate has doubled its revenue through acquisitions and recruitment. The company’s objective is to double its revenue again by 2020.

Sofigate’s revenue in 2017 was EUR66 million, an increase of 80 percent compared to the previous year. In January 2018, Sofigate made its fifth acquisition and acquired Headstart Ltd., which raised the pro forma revenue to more than EUR75 million – double compared to 2016. Pro forma EBITDA was EUR 5.5 million. Sofigate currently has more than 500 employees in Finland, Sweden, Denmark and the United Kingdom.

Sofigate believes it will double its revenue and its personnel by the end of 2020.

According to CEO Sami Karkkila, the key impetus for growth is Business Technology, which is also the company’s competitive edge in the international market.

“Digitality has reached the stage where companies find it sensible to connect IT and digital units into a Business Technology unit – all technology is an integral part of business. This creates a strong demand for our management and development services. The cornerstone of our success is the Open Management Model created together with Nordic organizations. It is spreading internationally and challenging the costly methods of consultancy companies,” said Sami Karkkila.

Humane way of doing business as a competitive edge – 150 Sofigate employees are now owners

In the autumn of 2017, Sofigate opened up ownership for the first time to external investors to finance the company’s growth plan, and in October chose LähiTapiola as an investor with a 6 percent ownership. Apart from that, Sofigate is entirely owned by its staff and founders. Sofigate gained more than 150 new owners through its employee shareholder program in the autumn.

“Although our growth rate is rapid and our aims ambitious, we want to create a humane way of doing business. We make choices and build sustainable and stable value for our company together with our staff. This, to us, is a more natural choice than getting listed, and we believe that it is also an advantage in recruiting,” said Karkkila.

Sofigate is continuously recruiting and expects to hire 100 to 150 employees in 2018 to strengthen its business. New business acquisitions are also on the horizon: Sofigate is planning to invest EUR50 million in acquisitions.