Economic|Mergers and acquisitions
The security company F-Secure will become With Secure when the consumer business is spun off into another listed company. Risto Siilasmaa is committed to both companies.
Security company F-Secure will be split into two separate listed companies, the company’s board announced on Thursday.
The current company will be renamed With Secure, which sells security to businesses. A new listed company will be established for the consumer business, using the old name F-Secure.
“F-Secure is a company more than 30 years old. When we started, we had the same product for consumers and businesses. Initially, the technical solutions were quite simple, but over the years they have become very complex, especially in the corporate business, where the market is much larger, ”says the Chairman of the Board. Risto Siilasmaa.
He is one of the founders of F-Secure and the largest shareholder. Siilasmaa’s holding in the company is 38 percent. If the Annual General Meeting in May approves the absolute division of the Board on Thursday, Siilasmaa will become the Chairman of the Board of With Secure and Juhani from Hintika managing director.
The approval of the Annual General Meeting is almost certain, as Siilasmaa, the life insurance company Mandatum, the employment pension companies Ilmarinen, Elo and Varma and the life insurance company Kaleva have committed to vote in favor of the division. The combined holding of these shareholders is 50.6 percent.
A new F-Secure is proposed as Chairman of the Board Pertti Erviä and as CEO About Timo Laakso. Siilasmaa is also a candidate for F-Secure’s Board of Directors.
The company the current shareholders will receive one new F-Secure share for each share held upon completion of the demerger.
“Product development in the consumer business and the corporate business are far different and the needs of customers are very different. The benefit of having both businesses in the same company has gradually diminished, ”says Siilasmaa.
In addition, he emphasizes that the division is in the interests of shareholders, employees and customers. If the benefits are so obvious, the question can rightly be asked why no division has been made in the past.
“One of the main reasons for this is that the turnover of both businesses has only recently increased to more than 100 million euros. As a result, the benefits of these businesses in the same company are even smaller relative to total volume. By splitting into two separate companies, we will be better able to develop our competitiveness. ”
Of the two the new F-Secure, which focuses on the consumer business, is clearly more profitable. However, Siilasmaa emphasizes that With Secure, which focuses on corporate information security, is in a strong growth phase.
F-Secure currently employs 1,700 people worldwide. Of these, 1,300 will be employed by With Secure after the split and 400 on F-Secure’s payroll.
“We have invested heavily in the corporate business, where we have very good growth opportunities. We are ready to make additional investments as the market grows a lot and we believe that profitability will improve as the business grows. This does not mean that we will not seek to grow our business in the consumer business as well. ”
According to Siilasmaa, F-Secure and With Secure are also completely different companies from the perspective of investors, whose business is evaluated with different coefficients.
“From an investor perspective, F-Secure has, in a way, been an average of averages. As a result of the demerger, the strengths of both businesses will emerge in a whole new way. ”
Are acquisitions possible?
“Yes, absolutely, but now there is no plan we could talk about.”
The goal is for With Secure to double its net sales without possible acquisitions by the end of 2025, and the adjusted EBITDA margin to measure profitability will be 20. Last year, it was -8.3.
#Mergers #acquisitions #Security #company #FSecure #splits #listed #companies #Risto #Siilasmaa #tells #split #FSecure #founded #years
