Enfo’s Extraordinary General Meeting resolved on the demerger of Enfo
The objective of the demerger is to sharpen the positioning of Enfo’s consulting and service businesses and to create stronger conditions for the growth and profitability of both businesses.
The Extraordinary General Meeting of Enfo Oyj (“Enfo”), a subsidiary of Osuuskunta KPY (“KPY”), resolved on March 14, 2023 to separate Enfo’s consulting business into a new independent limited liability company (“Enfo Consulting”) through a partial demerger.
As the majority owner of Enfo, KPY strongly supports the split
KPY is a dedicated and value-based owner that is actively involved in the development of its ownership companies. The aim is to achieve long-term development and increase in value.
“The partial demerger creates prerequisites to the growth and improves the profitability of the companies established through the demerger. It also enables the development of both businesses more closely and efficiently in line with their own interests than before,” Anssi Lehikoinen, CEO of Osuuskunta KPY emphasizes.
In line with its ownership strategy, KPY plans to seek both business and ownership partnerships for both companies established through the demerger in order to promote their profitable growth.
“Both Enfo’s consulting and IT services businesses have considerable expertise and development potential, as well as abilities to meet customers’ needs that are undergoing a transformation due to digitalization. In both businesses, we see opportunities to develop shareholder value, and we see the demerger creating a new kind of interest from potential partners as well,” Lehikoinen says.
“Preparations for the demerger are progressing as planned. The resolution of the Extraordinary General Meeting takes us one step closer to our goal of creating stronger conditions for the growth of both our consulting business and IT services as independent companies. It also provides attractive career opportunities to the employees,” says Mikko Valorinta, CEO of Enfo Oyj.
Enfo is divided into consulting and IT services business
“Enfo Consulting” will consist of Enfo’s consulting business. Enfo’s current CEO Mikko Valorinta will be appointed CEO of Enfo Consulting. Enfo’s consulting businesses operate in both Finland and Sweden. In 2021, the consulting business employed 469 people and its total turnover was approximately EUR 68.3 million. The plan is to rename and rebrand Enfo Consulting after the demerger.
The “Enfo IT Services” business, which will remain in Enfo, will focus on providing comprehensive IT outsourcing and data center services. The Enfo brand will remain with the IT Services business, and Nina Annila, EVP of Enfo’s current Care & Data Platforms business area, will be appointed as its CEO. In 2021, Enfo’s IT service business employed 280 people in Finland. Its turnover was approximately EUR 36.7 million.
Enfo Consulting’s personnel will transfer to the new company as old employees in accordance with their current duties. The transaction is expected to be completed in the second quarter of 2023.
Learn more about the planned demerger: https://www.enfogroup.com/press-releases/2022/enfo-announces-plans-demerge-two-independent-companies