Nordic digital transformation company Knowit AB is acquiring Danish IT consultancy firm Miracle -- an open source-focused firm that partners closely with IBM's Red Hat and Atlassian. The purchase price was approximately US$20.3 million.
This is technology M&A deal number 545 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
Knowit, founded in 1990, is based in Stockholm, Sweden. The company has around 3,800 employees, mainly in the Nordic countries, but also in operations in Germany and Poland. Knowit’s areas of expertise include system development, digital customer experiences, IoT, cloud, cybersecurity, and management consultancy.
Miracle, founded in 1995, is based in Copenhagen, Denmark with additional offices in the cities of Aarhus, and Aalbor. The company has around 130 employees. Miracle’s areas of expertise include IT solutions for both private and public companies.
Knowit paid about DKK 145 million (approximately US$20.3 millIon) enterprise value for a little more than 90 percent of the shares in the company.
Knowit’s Growth Path
The acquisition will give Knowit a stronger position in the Danish market, according to the company. Miracle will become part of the business area Knowit Solutions, which is already established in the country, Knowit said.
Knowit currently has a total of around 160 employees in Denmark, and will have about 300 consultants together with Miracle. Knowit has grown in the Danish market through multiple acquisitions acquiring Creuna, Strømlin, and 1588.dk in the last year. Knowit is now the largest digital agency in the Nordic region under the brand Knowit Experience, according to the company.
Knowit says that Miracle will gradually be integrated into and become part of the operations in Knowit Solutions in Denmark, managed by Jim Nielsen, current CEO of Knowit Solutions Danmark. Miracle's CEO, Jan Skelbæk, and the current management team will continue to head up the operations in Miracle with Skelbæk becoming part of the management team of Knowit Solutions Danmark, the company said.
Knowit Acquires Miracle: Leadership Insight
Åsa Holmberg, head of Knowit Solutions, commented:
"We are pleased to welcome all our new colleagues from Miracle to Knowit. We see a great potential for gaining an even stronger position on the Danish market and supporting both existing and future clients with a more attractive offer. Miracle gives us a great platform, primarily in the public sector and financial services.”
Jim Nielsen, CEO, Knowit Solutions Danmark, said:
"We are very proud to get our new colleagues from Miracle onboard. Together, we will have the possibility to serve clients throughout Denmark with best-in-class services in all parts of digital transformation, system development, and cloud services. Our corporate cultures mesh well, as we share the vision of putting humans at the center when we are developing new technology. With the addition of Miracle, Knowit is gaining a much stronger position on the Danish market, with offices in Copenhagen, Aarhus, and Aalborg.”
Jan Skelbæk, CEO, Miracle, added:
"Over the years, Miracle has created a unique position for itself on the Danish market for IT consultancy. We are now ready to take the next step and see a great potential in the merger with Knowit, where we complement each other's competence. Knowit is a well-known Nordic brand, with a strong employer brand that creates great development possibilities for our employees. We are looking forward to becoming part of Knowit, which has a clear vision of contributing to a sustainable and humane society and is on an exciting growth journey.”