Software and IT services company Bilot Oy is planning to list on the stock exchange.
The company describes itself as follows:
“Bilot creates strategic competitive advantage for its customers by building a superior digital customer experience. Bilot is a strategic partner supporting the customer’s core business, with a focus on the customer’s customer.”
The company aims to grow from its current revenue of just under €20 million to €50 million by 2024. The profitability target is an EBITA of 10%.
Addition: In the industry, the company itself would place itself somewhere between Digia and Siili. Considering Digia, the position is, in my understanding, relatively optimal for the current needs of the IT field.
There are plenty of these in Finland, I don’t know the company in question myself from before. It seems to be a pure project supplier, so your categorization is good. The company’s history was described quite poorly and the financial data was only for two years. Operations in Poland and Sweden remain completely open.
I would need a lot more flesh around the bones to be interested.
Does Inderes have a chance to get an interview, for example?
{“content”:“Interesting case. Being debt-free is a great thing! I’d also like to see something other than project operations. Let’s hope Inderes gets an IPO analysis assignment!”,“target_locale”:“en”}
Interesting choice of words when asked about possible company acquisitions. Could eTasku Solutions Oy, which practices “receipt trading,” be in sight That would bring about 10 percent more revenue if it were to detach from Accountor.
The interview gave me the impression that a specific acquisition target is already in their sights — and they’re looking to raise money for that deal with an IPO.
It would be interesting to hear how they plan to reach 50 million euros in four years. When looking at benchmarks like Vincit, Futu, Gofore, and Siili, the biggest limiting factor for growth is the shortage of coders. And the same coding talent pool is now also being tapped by more traditional companies, for example, from the industry and financial sectors. What is Bilot’s competitive advantage/attraction in the talent competition? Based on the financial figures, there isn’t much leverage to enter a salary competition. Of course, the offering will bring in a maximum of 8 million euros, but that won’t facilitate many acquisitions. For the rest, an offering that dilutes the share would have to be arranged.
It’s difficult, and at that earlier 10 percent growth rate, it will take much longer. They can, of course, buy an additional 10 million in revenue with the 8 million from the offering, but a more realistic target would be 40 million in revenue by 2024.
@First_Timer, I meant that one acquisition could probably be financed from the cash and the funds from the IPO (€8M), but subsequent acquisitions would likely be paid for with Bilot shares. So, in practice, a share issue would be carried out where the owner of the acquired company would receive part or even the entire purchase price in new Bilot shares.
Many revenue-financed companies in this sector that have grown to over 100 people were founded in the last decade (primarily developers of digital services), but what is perhaps exceptional about Bilot’s position is that the company operates in the demanding large enterprise customer segment and deep within customers’ business-critical core systems (SAP). This is a service area where large companies do not easily allow small IT suppliers (a higher entry barrier).
That would bring about 10 percent more revenue if it were to detach from Accountor.