Evli Plc and the private equity investor Bregal Milestone have announced on March 6, 2024 a strategic partnership to grow the business of Evli Alexander Incentives Oy (“EAI”). In connection with the arrangement, EAI will be rebranded to Allshares Oy1.
Evli Plc and the private equity investor Bregal Milestone have announced on March 6, 2024 a strategic partnership to grow the business of Evli Alexander Incentives Oy (“EAI”). In connection with the arrangement, EAI will be rebranded to Allshares Oy1.
As part of the partnership arrangement Bregal Milestone has agreed to invest over EUR 65 million in Allshares to acquire shares owned by certain minority shareholders and to fund future organic and inorganic growth in the company.
Evli Plc’s subsidiary EAI, later Allshares, is a market leader for share-based incentive plan design and administration in Finland. The company currently serves approximately 300 multinational public and private enterprise customers with an end-to-end digital turnkey solution for share plan management in over 100 countries. Companies and participants can use Allshares’ proprietary software and services to administer their share plans in compliance with relevant regulations, legal, and tax frameworks as well as to deliver automated IFRS reporting of share plans to companies.
Significant strategic and financial partnership
The arrangement will mark a significant strategic and financial partnership for Evli Plc and is expected to increase the value of Evli Plc’s ownership in Allshares over a longer period. In relation to the arrangement, Evli will recognize a non-cash accounting gain in fiscal year 2024 of approximately EUR 14 million.
"We are very excited to partner with Bregal Milestone, who shares our vision of becoming the leading provider of share-based incentive and compensation plan management and design in Europe and beyond. With their support, we will be able to accelerate our growth, invest in our platform, and enter new markets. We believe that this partnership will create significant value for our clients, employees, and shareholders," Maunu Lehtimäki, CEO of Evli Plc comments.
Bregal Milestone is a leading European growth private equity firm and enjoys a strong track record in scaling Nordic champions across Europe via organic and inorganic growth. Bregal Milestone will bring strategic guidance, operational support, financial resources, and access to its deep network of partners and contacts to accelerate organic and inorganic growth of Allshares.
"We are honoured to partner with Evli Group and management. With a strong track record, high recurring revenues, and a leading market position, Allshares will be well-positioned to achieve accelerated international growth. Share plan design and administration forms a robust anchor pillar of the platform, characterised by the long-term administration of share-based incentive schemes with innovative products and services that engage multiple stakeholders through a digital platform. We see an increasing adoption of software and data products across all compensation and benefit categories and Allshares is well positioned to capitalise on this trend," says Cyrus Shey, Co-Founder and Managing Partner at Bregal Milestone.
The contemplated partnership arrangement is expected to be completed during March 2024. Following completion of the arrangement, Bregal Milestone will own 55 percent of the shares and votes in Allshares, Evli Plc will own 42 percent, and Allshares’ management will own the remaining 3 percent. In the future, Allshares' impact on Evli Group's result will be presented as part of the associate's results.
1 Allshares Oy is the successor name for Evli Alexander Incentives Oy (“EAI”). The contemplated name change from EAI to Allshares is planned to take effect from the completion of the arrangement.
Additional information:
Maunu Lehtimäki, CEO, Evli Plc, tel. +358 50 553 3000, maunu.lehtimaki@evli.com
