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Verdane generates 3.5x on elderly care company

Verdane acquired in-home elderly care company Caretech from closed-doors firm Småföretags Invest in 2006.

Verdane Capital has sold Swedish elderly care company Caretech to listed telecom company Doro, according to a statement.

The sale generated a 3.5x return for the Nordic direct secondaries firm. Doro purchased the company for SEK 240 million ($31.4 million; €25 million), according to media reports.

The transaction is expected to close on 31 January 2015.

Verdane initially acquired Caretech through a direct secondaries deal in 2006. The firm purchased 12 companies from Swedish fund Småföretags Invest, which has since closed its doors. The portfolio acquisition was funded using Verdane Capital V, which raised $150 million, according to PEI’s Research and Analytics division. Fund V invested in 61 companies and has sold its stakes in 54 companies, according to director of investor relations Frida Einarson.

Cartech’s services help elderly live independently in their homes, offering remote assistance throughout the Nordic region. During Verdane’s owernship Caretech’s revenues grew four-fold and Verdane helped the company expand from hardware sales to subscription sales and rentals.

“Caretech has built a really strong position in its niche, which this transaction clearly demonstrates. Doro is an excellent buyer, whose focus on mobile care really complements Caretech’s focus on safety and comfort for elderly users,” said Verdane partner Goran Strandberg.

Earlier this year Verdane sealed its first exit from its most recent fund, Fund VIII. The firm sold its 20 percent stake in domestic appliance e-commerce company WhiteAway in July. Financial terms of the sale were not disclosed.

Verdane has also been active on the acquisition front this year, Fund VIII had invested in 17 companies as of mid-November. The firm closed three direct secondaries portfolio deals and one direct investment deal using its primary and secondary capabilities, Einarson previously said.