The Axel Johnson Group divest its stake in Educations Media Group, which provides education on digital platforms
Novax is part of the Axel Johnson Group, has sold its 28 per cent stake in the Swedish education company Educations Media Group (EMG).
The buyers is venture capital company Verdane along with three of EMG’s founders: Fredrik Söderlindh, Fredrik Högemark and Mattias Säker. The trio becomes a majority shareholder, regaining control of their company.
“We have joined forces with the company for nine years. With the company entering the next phase of expansion, the time is right for a new owner to come in with new ideas and energy,” says Joakim Skarborg, CEO of Novax, the divesting company. “We have built an excellent business and are happy with the return. There is nothing dramatic about all of this.”
EMG, which was founded in 2002, operates more than 20 digital marketplaces in education. The best-known brands are “Studentum.se”, “Utbildning.se” and the international site “Educations.com”.
A total of 3,000 education companies have connected with EMG’s platforms, which together have about 30 million visitors a year.
“We think that education is a very interesting area, given that the sector is changing at a rapid pace. I believe that more and more schools will market themselves in digital channels in the future. EMG occupies a very strong position there,” says Jakob Tolleryd, partner at Verdane.
The business concept involves connecting education companies with private individuals and other companies interested in finding the right educational opportunities.
“Half of our sales comes from the student segment, which we help find the right education. The other half consists mainly of revenues from the corporate segment, where we help professionals find the right continuing professional development,” says Fredrik Söderlindh, EMG’s CEO and co-founder.
EMG in turn charges those who want to advertise on the platform. In 2018 net sales amounted to SEK 206 million, and the company made a profit of almost SEK 15 million. The customer list includes major companies such as H&M, General Electric and Volvo, which use EMG’s platforms to provide continuing development for their employees. In 2019 revenues are expected to increase by 30 per cent to over SEK 270 million.
“In recent years we have invested heavily in developing our services, and this will prove to be a strong growth factor this year,” says Fredrik Söderlindh.
Following the transaction, EMG – which has about 170 employees – wants to increase its activity and presence in three major markets: France, Germany and the United Kingdom.
Are there plans to inject capital into the company in the near future?
“Not in the short term,” says Jakob Tolleryd at Verdane. “We foresee continued organic growth in both the Nordic region and the rest of Europe. But there should be a number of interesting acquisition possibilities. If we feel a need for greater expansion of the business, a new issue of shares is always an option.”
In the education sector, Verdane has previously invested in the software company Lingit and the digital learning platform Conexus. Notable holdings in other lines of business include Babyshop and Mathem.
Have you already formulated a plan to be listed on the stock exchange or to sell EMG?
“Our goal is to build a platform that is really strong in its field throughout Europe, and potentially the rest of the world. If we succeed in this, we know that EMG will be an extremely profitable company, which will certainly attract the interest of many buyers. But in our fund we can be partners in the portfolio companies for up to 14 years, so there is really no rush,” says Jakob Tolleryd.
