Midaxo, a Finnish developer of a cloud M&A platform, has closed a EUR12.9m funding round comprising EUR10.3m for the company and EUR2.6m for the existing shareholders – led by major growth investor Idinvest Partners, with the participation of the existing investors Tesi and EOC Capital.
This B round brings Midaxo’s total funding to EUR18.6 million and follows a period of sustained and rapid growth. In 2017, Midaxo more than doubled its revenue and expanded its customer base to hundreds of leading corporations, consultants, and private equity firms, including over 40 companies on the Fortune 1000 list, such as HP, Philips, Daimler and Verizon.
After successfully entering the US, Midaxo is now focused on expanding its European operations, including into the Nordic region. Midaxo has 70 employees across four offices in Boston, Helsinki, Amsterdam, and Riga. Headcount has doubled over the past year and is set to further increase as the company is actively looking to recruit a number of high-quality software developers in Helsinki.
Midaxo helps companies run successful M&A and corporate development projects – minimising deal risk and maximising value creation. Commenting on Midaxo’s rapid expansion, CEO Ari Salonen says: “Virtually all larger corporations and 60 per cent of mid-market companies actively use M&A to grow and accelerate their transformation. To consistently succeed in M&A, thought-leaders use purpose-built tools to drive systematic, transparent, and repeatable deal execution from opportunity identification through to integration. For example, their due diligence efforts take 50 per cent less time and 50 per cent less resources, enabling faster reaction and more thorough analysis. With its leading software, Midaxo is proud to support M&A professionals in their important and complex work.”
Midaxo also works closely with leading M&A consulting and private equity firms. “Our partnerships program covers all areas of M&A but is particularly relevant to post-merger integration where our partners help in-house teams maximize deal value,” says Ari Salonen.
In addition to strengthening its customer-facing team with the new investment, Midaxo will focus on developing Artificial Intelligence technology to enhance and support its customers’ M&A activity. “We are already the most widely adopted and faster growing M&A software. The additional funding allows us to capture the nascent market opportunity and to introduce significant innovations to benefit the deal-makers of the world,” says Kalle Kilpi, Head of Product at Midaxo.
“Digital transformation presents enormous opportunity for Midaxo – the company’s rapidly growing customer base, including Nokia and Danfoss, demonstrates that global companies are demanding a digitalised approach to M&A. Looking regionally, the Nordics is buoyant at the moment – 2017 deal value increased by 75 per cent against 2016, with the upward trend set to continue into 2018. We are investing in Midaxo as we strongly believe the company can leverage this growth and will continue leading the digital M&A space, not just in the Nordics but globally. It’s truly exciting to see a Finnish company flourish and we are excited for the future,” says Keith Bonnici, Investment Director at Tesi.
