LeadDesk strengthens its market position in Norway through the acquisition of Telemagic

LeadDesk is the leading company in AI-enabled cloud-based contact center software in Europe. Today, LeadDesk has announced it is consolidating the market in the Nordics further by acquiring Telemagic, a CCaaS (Contact Center as a Service) provider headquartered in Norway.

“We have already been a leading provider of contact center software in Finland and Sweden, and with this acquisition we are further strengthening our position in Norway. Telemagic has built a strong Norwegian customer base, and I’m excited to welcome them as the newest addition to the LeadDesk family”, says Olli Nokso-Koivisto, CEO of LeadDesk.

LeadDesk plays a pivotal role in making it easier for contact centers to manage the hundreds of millions of interactions companies have each year with their customers in Europe.

The acquisition of Telemagic is part of LeadDesk’s growth strategy and further strengthens the company’s position in Europe. Nokso-Koivisto continues to see opportunities to consolidate the market further. Generative AI is expected to accelerate consolidation further.

“The European CCaaS market remains fragmented and smaller companies and service providers lack the resources to make the necessary investments in AI capabilities. As one of the leading players in Europe, LeadDesk has been one of the first movers in the latest AI technologies, launching several new AI-powered solutions. We are happy to be able to introduce AI to Telemagic’s customers as well.”

Telemagic welcomes the new owner, as together the company can offer better and more extensive service for their customers both now and in the future.

“We are proud of what we have achieved with Telemagic. Going forward, LeadDesk is a great home for the company and I believe the businesses will thrive together”, says Leif Einar Aune, Chairman of the Board and major shareholder of Telemagic.

In 2023, Telemagic net sales amounted to NOK 13.4 million and EBITDA -0.3 million NOK. LeadDesk’s management expects clear synergies to materialize in combining the two companies. The purchase price consists of an enterprise value of NOK 10.8 million and an earnout of a maximum of NOK 2 million based on reaching financial targets during 2024. The payments will be paid in cash. LeadDesk will raise a loan of ca. EUR 1.2 million to finance the purchase price and working capital.

“Based on LeadDesk’s track-record of previous successful integrations, we are confident that the business can quickly be integrated and made profitable while improving service to Telemagic’s customers”, says Nokso-Koivisto.

Telemagic will be included in LeadDesk’s consolidated income statement as of June 2024. The estimated impact on revenue is expected to be around EUR 0.7 million in 2024 and the impact on EBITDA is not expected to be significant for this year.

Additional information

Olli Nokso-Koivisto, CEO, LeadDesk Plc
+358 44 066 5765
olli.nokso-koivisto@leaddesk.com

Certified Adviser:
Oaklins Merasco Oy, +358 9 6129 670

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LeadDesk in brief

LeadDesk is a leading European provider of cloud-based contact centre software. The LeadDesk cloud  service, powered by artificial intelligence, improves customer experience and sales productivity. Over 20,000 customer service and sales professionals work more efficiently with LeadDesk weekly. In 2023, the Group’s revenue was EUR 29.4 million, most of which came from outside Finland. The Group has offices in eight European countries. LeadDesk Plc’s shares are traded on the Nasdaq First North Finland marketplace under the ticker LEADD. www.leaddesk.com