The North Alliance acquires leading digital agency Proletar
The North Alliance ("NoA"), majority owned by Norvestor VII, L.P., has signed an agreement to purchase the award-winning digital agency Proletar (“Proletar” or “The Company”).
“Proletar is a leader in data-driven marketing in Norway and is a perfect fit with our strategic focus. NoA helps its customers with digital transformation and growth through profitable brand positioning, development of digital products and services as well as offering world-class communication services with a creative edge. Simply put, Proletar help customers use both their own and third-party data to measure, manage and optimize the effect of their marketing efforts in digital channels. Following the acquisition, we will complement our current offering by building a leading Nordic community of experts in data-driven marketing.”, says Thomas Høgebøl, CEO in NoA.
“NoA and Proletar will offer a unique combination of services and products with the potential to create high value added for our customers. This is based on the results we see in multiple of our customer relationships and in feedback we get from customers across Scandinavia”, says Høgebøl.
Proletar was established two years ago by several former Google employees. The Company already works with some of Norway's largest digital brands, including Bank Norwegian and Kolonial. Earlier this year the company won the Agency of the Year Award in the "Performance" category. Proletar’s approach involves working closely with a company’s management and operating as an integrated part of their customers´ teams. The compensation model is transparent without any form of kickback from the media or advertising platforms.
“We believe that Proletar’s expertise will be critical for advertisers to develop. An important part of a Proletar consultant´s job is, therefore, to help companies build expertise internally and organize themselves optimally”, says Høgebøl.
NoA has more than doubled its turnover and bottom line since its inception in 2014. In 2018, operating profit exceeded NOK 100 million before depreciation and amortization and adjusted for one-off costs. In addition to growing organically, growth has come through several strategic acquisitions; among others the Swedish-American design agency North Kingdom in 2018, and later the Swedish consulting company Evidence Strategy.
Proletar aims for media revenue of NOK 350 million, agency revenue of NOK 15.5 million and an operating profit of approximately NOK 7 million in 2019.“The creative and financial success of NoA in recent years shows that they have the correct market approach. NoA has a unique position in Scandinavia, and we believe that this is an exciting continuation for Proletar”, says Geirr Lødemel Tvedt, General Manager of Proletar. He adds that they plan to employ many new people:
“The key to our success lies in our employees and the way we work with customers. Our employees are our most important competitive advantage, and we employ only the best and the brightest”, says Tvedt. He is looking forward to joining the NoA family.
“As a part of NoA, we will keep our edge, but simultaneously gain access to a strong, creative environment and an international network. Today, our growth is limited by our access to the right people, but through NoA, we will drastically improve our recruiting capabilities”, says Tvedt.
The parties do not want to disclose the price.
For further information: Henning Vold, Partner Norvestor Telephone: +47 908 79 581 Email: henning.vold@norvestor.com
Thomas Høgebøl, CEO The North Alliance Telephone: +47 950 92 000 Email: thomas@thenorthalliance.com
The North Alliance (NoA) is the next generation tech enabled network - born in the Nordics in collaboration with some of the most recognized global brands - building a new discipline combining strategic brand management, creative storytelling, authentic design, and engaging digital products- delivered and optimized by real time data mastery. NoA has offices in Norway, Sweden, Denmark, Poland and the US with more than 800 employees. NoA creates growth for clients such as IKEA, Google, Disney, SAS, NorgesGruppen, Sats, Danske Bank, og SCA. Read more at their website
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 their website