Xllnc acquires Replace and becomes sustainable IT-leader in the Nordics


Xllnc Group AB (“Xllnc”), majority owned by Norvestor VII, L.P., has acquired REPLACE OÜ (“Replace”). Replace is a leading European mobile and IT equipment recycling provider. Together the companies will have a leading position in the sustainable IT service market with more than 1 million IT devices under management.

Xllnc and Replace will have combined revenues of c. SEK 3.2 billion in 2019. Xllnc delivers IT lifecycle management solutions to large corporations, the public sector and schools, while Replace delivers mobile and IT equipment recycling services to large Nordic and European enterprises. As a group, the two brands will complement and strengthen each other. The brand, Replace, will continue to exist as a part of Xllnc.

“This is a perfect match. The global IT industry has approximately the same negative impact on the climate as the global flight industry (approximately 2% of the total CO2 emission contribution). It has been on our agenda for several years to find solutions to reduce the CO2 footprint by improving the management of IT resources. With the acquisition of Replace, Xllnc will be the first Nordic IT services provider to offer sustainable IT services in a large scale to our customers”, says Martin Backman, CEO of Xllnc.

Replace was founded in Estonia in 2016 and has rapidly expanded its business in the Nordics and the rest of Europe. The Company has grown from 53 employees and revenues of EUR 5.3 million in 2016, to 250 employees and revenues of more than EUR 70 million in 2019. Its electronic asset management service offering includes B2B and B2C refurbishing and re-marketing of used mobiles and IT equipment. Replace’s customer base consists of more than 500 customers and partners. “This partnership will be fantastic. We can see that there are a lot of similarities between our cultures, and we see many opportunities for synergies that will enable us to become a strengthened company”, says Jorgen Berg, CEO of Replace.

“Climate change, resource management and care for the environment is of ever-increasing importance to all stakeholders in society. The UN have pinpointed responsible consumption and production as goal No.12 on the Global 2030 agenda. To be able to offer employees a sustainable place to work is a critical component to this ambition. With the acquisition of Replace, Xllnc becomes a viable and trustful partner in offering a workplace taking full advantage of IT investments, not only in terms of cost but also the climate and resource responsibility”, says Stefan Nilsson, sustainability director in Xllnc.

“We are truly excited to have Replace joining our group. Replace will significantly strengthen our capability to help enterprises become more climate friendly and drive the evolution of the circular economy”, says Henning Vold, Partner at Norvestor.

For further information: Henning Vold, Partner Norvestor Telephone: +47 908 79 581 Email: henning.vold@norvestor.comMartin Backman, CEO Xllnc Telephone: +46 70 864 42 22 Email: martin.backman@xllnc.com

Xllnc is a supplier of IT lifecycle management solutions for large corporations and schools. The Company had a pro forma turnover of SEK c. 1,800 million in 2018 and employs 300 people. Xllnc enables large companies and institutions to manage their physical IT assets to maximizes their use and improve quality and efficiency. Read more here: www.xllnc.com

Replace Group cooperates with companies all over the world with repurchase solutions and handlingof returned electronics. Replace GDPR compliance and ISO 9001, 14001, 27001 combined with the usage of the best data wiping solutions guarantees a safe handling of the goods processed. Read more at www.replacegroup.com

Norvestor is a leading private equity company focusing on lower mid-market buyouts in the Nordic region. The team has worked together since 1991 making it one of the most experienced private equity teams in the Nordics, having executed 71 investments with >250 add-on acquisitions, in addition to executing 48 exits, including 15 IPOs. Norvestor focuses on investment opportunities in growth companies, making platform investments principally in Norway and Sweden, with potential to achieve a leading Nordic or international position either through organic growth, through acquisitions or by expanding into new countries. Read more at www.norvestor.com