Senior handset manufacturer says acquisition is a big step towards building a global telecare company
Doro has agreed to acquire CareTech, a provider of digital care solutions and services for the elderly, for SEK 240 million (£20.2 million).
The deal, which is expected to close on January 31, 2015, will be financed through a combination of cash and loans, with CareTech operating as a business area within the Doro Group.
CareTech was founded in 1988 and has been owned by private equity firm Verdane Capital V since 2006. It employs 100 people across its headquarters in Kalix Sweden, and offices in Stockholm, Germany and London.
It offers telecare assistance in the Nordics and operates a monitoring centre that cares for 60,000 users on behalf of municipalities in Sweden and Norway.
CareTech currently has an annual growth rate of around 30 per cent, with estimated revenues of around SEK 150 million (£12.6 million) for 2015.
Doro CEO Jérôme Arnaud (pictured) said: “We want to grow within the telecare sector as it sits well alongside our current core business of senior mobile phones. The acquisition of CareTech also accelerates the development of our offering within telecare.
“CareTech’s integration within Doro will be a big step toward building a global telecare company. In addition, CareTech’s strong recurring services business model will improve our margins.”
CareTech CEO Ulf Lindsten added: “Verdane Capital V has been a professional owner who has ensured that we have had the resources necessary for rapid growth and who has helped us realise the ambitious plan to build a market leader in digital care solutions.
“With Doro we now see possibilities to grow our international offering at a faster pace. Doro’s mobile telecare offering including smartphones is a good platform to add-on services for CareTech.”